International appetite for Brazil remains high
There’s been much talk of a global commodities route in recent years, with China’s economic slowdown often touted as the reason behind falling demand and plummeting prices. Yet there are plenty of good news items out there, if you know where to look.
Brazil’s beef industry is one such tale. Between June 2015 and January 2016, China purchased $906 million worth of beef, accounting for 28% of the entire Brazilian beef industry’s revenue for the period.
China’s increasing demand for meat has been well documented. By calorific intake per capita, meat consumption in China has more than quadrupled since the 1970s. In the decade to 2013 alone it jumped by nearly 25%.
China is responsible for feeding 20% of the world’s population, yet it has just 8% of the total available arable land. This means that the rising meat consumption in China is good news for Brazilian cattle farmers. Antonio Camardelli, president of the Brazilian Association of Meat Exporters, comments,
“They buy all types of cuts and are accounting for solid revenue.”
Chinese beef consumption currently stands at around 6 kg of beef per capita per year, compared to 35-40 kg in Brazil, emphasizing how much scope there is for further demand in this flourishing market.
Nor is it just Brazil’s beef farmers who are doing well. The country’s organic farming sector is also thriving. Demand for organically farmed products has shot up over the past year. According to one government survey, organic product sales grew by 35% in 2015. Further growth of 30% has been forecast for 2016. Despite the higher price of organic fruit and vegetables, a large proportion of Brazil’s growing middle class seems happy to opt for organic when given the choice.
Paul Telfer, chief financial officer of award-winning property developer Ritz-G5, comments,
“Confidence in the recovery of the Brazilian economy is on the up and there is certainly an understanding of getting what you pay for when it comes to organic produce. The same applies to real estate. Developers with quality products are finding that investors are still extremely keen on Brazil. In fact, the real’s drop in value has meant that many overseas investors are particularly keen to snap up high end Brazilian real estate.”
Costa Azul is one such example. The luxury, award-winning development is in one of the most exclusive districts of the city of Natal: Petrópolis. 168 high spec, contemporary apartments offer easy access to the city and some of the country’s best beaches. Ocean views, a swimming pool, spa, gym and private bar are enough to satisfy even the most discerning of residents, with purchasers, investors and tenants all keen to have their stake in the lavish development as Brazil’s economy prepares to shift back into high gear.
For further details, contact the Ritz-G5 team on +44 207 183 7565 or visit www.ritz-g5.com.