In response to high diesel fuel prices, a strike by truckers in Brazil has led to a recent economic slowdown and agricultural losses. Truckers are demanding lower diesel prices and the dismantling of fuel taxes by barricading highways with semi-trucks, slowing the movement of goods throughout the country. Brazil’s agricultural products destined for export to international markets often make their way to port by truck, and this strike could have global implications for a number of commodities, such as beef.
In 2017, Brazil was the second-highest producer globally of beef at 9.5 million tonnes. A group representing Brazilian beef producers recently noted that the strike has already resulted in nearly $170 million in export losses for beef companies. This represents close to 40,000 tonnes of beef products which are currently sitting in stalled trucks, quickly approaching dates at which they can no longer be safely sold for human consumption.
In an attempt to shut down the strike and get the economy and agricultural exports moving again, the Brazilian government announced today that it would fine any company or political organization involved in the protests. As movements like the Brazilian trucker strike curtail agricultural export markets, Gro Intelligence subscribers can analyze key commodity data and the implications for global trade.