How frozen meat export pricing works

A complete frozen meat quotation is a bundle of commercial terms, and the price is only meaningful in combination with the rest. Before you look at the figure, check that the quotation states each of the following:

• The exact cut, with any grade, calibration or weight band. Whole chicken in one weight band is a different product from whole chicken in another, and a boneless beef cut is not interchangeable with a bone-in one.
• The packing format and carton net weight, including whether product is individually quick frozen or block frozen, and whether inner bags or trays are used.
• The quantity, in metric tonnes or full container loads.
• The Incoterm and the named port, for example FOB at a named Brazilian port or CFR at a named destination port.
• The validity period of the price.
• The payment terms.
• The production to loading lead time, so you know when the goods will actually be on the water.

A price cannot be compared between two suppliers unless all of these match. A lower figure on a smaller carton, a wider calibration, a different Incoterm or a longer lead time may be more expensive in practice than a higher figure on the specification you actually need. When comparing offers, lay them out side by side on the same fields and only then compare the numbers.

Incoterms 2020, published by the International Chamber of Commerce, define where the seller's obligations end and the buyer's begin. The three terms most often seen in frozen meat quotations are:

In each case the Incoterm must be followed by a named port to mean anything. "CIF" on its own is not a delivery term, while "CIF Jebel Ali" or "CFR Qingdao" is. Neither CFR nor CIF includes destination duties, import clearance, demurrage or inland delivery unless separately agreed. Container buyers should also be aware that the ICC recommends container-appropriate terms such as FCA for goods handed over at a terminal rather than loaded directly on board. For a deeper explanation, read our article on Incoterms 2020 for frozen meat importers.

Loading is coordinated from Brazil's main reefer terminals, and the named port is agreed per order; the loading ports are listed on the shipping page.

Frozen meat moves in refrigerated containers, known as reefers, held at frozen temperatures from loading to discharge. A 40ft high-cube reefer typically loads in the region of 24 to 27 metric tonnes of frozen meat, depending on carton dimensions and loading method. A 20ft reefer loads substantially less, and its freight cost per tonne is usually higher.

The tonnage that fits is not fixed. Carton dimensions determine how efficiently the internal space of the container is used, and cartons that leave gaps at the walls or ceiling reduce the load. Whether the load is palletised or floor-loaded also matters: pallets make handling faster and reduce carton damage, but the pallets themselves take up space and weight, so a palletised container usually carries fewer tonnes of product. Because freight, inspection and documentation are largely a cost per container, every tonne less in the container raises the cost per tonne delivered.

Full container load ordering is the norm in this trade. Part-container requests usually price worse per tonne, because the fixed costs of the container are spread across less product, and mixed loads may need separate documentation for each product line. If you are comparing offers, confirm the loading configuration for your order, including carton dimensions, palletised or floor-loaded, and the net tonnes per container, before comparing prices per tonne.

Brazilian frozen meat prices respond to a small number of well understood drivers. Knowing them helps buyers read why a quotation has changed between enquiries.

• The Brazilian real against the US dollar. Export prices are usually quoted in US dollars, while production costs are incurred in reais, so currency movements affect the dollar price producers need.
• Feed costs, principally corn and soymeal. Feed is a major share of the cost of producing chicken and pork, and to a lesser extent grain-finished beef.
• Ocean freight rates and reefer equipment availability on the route. On CFR and CIF quotations, freight is part of the price, and shortages of reefer containers can raise costs or delay loading.
• Destination import duty and any tariff quota. These do not change the exporter's price but they change the landed cost, and quota availability can shift demand between origins.
• Seasonal demand around religious and holiday periods in major importing regions, which can tighten supply of particular cuts.
• Trade suspensions, including those triggered by animal health events, which can remove supply from a destination at short notice and redirect it elsewhere.

Because of these drivers, a price is only valid for the period stated in the quotation, and should be reconfirmed if the order is not placed within it.

Payment terms in frozen meat export balance the seller's need to be paid for goods that leave its control at loading with the buyer's need to receive the right goods and documents. The terms buyers commonly see are:

• Irrevocable documentary letter of credit at sight. The buyer's bank undertakes to pay the seller on presentation of documents that comply exactly with the credit. It protects both sides but requires precise documents, and discrepancies delay payment.
• Letters of credit generally. Credits can be structured with deferred payment, confirmation by a bank in the seller's country, or other conditions, each changing cost and risk.
• Telegraphic transfer. A direct bank transfer, used for deposits and balances. It is simpler and cheaper than a letter of credit but gives less protection to whichever party pays or ships first.
• Deposit against balance on documents. The buyer pays a deposit to secure production and the balance when shipping documents are presented or released, commonly by telegraphic transfer.

Terms are a commercial negotiation tied to the relationship and the destination. Brazil Prime Foods Export confirms payment terms per order rather than publishing them. Whatever terms are agreed, confirm the bank beneficiary in writing through a verified channel. Our article on letters of credit versus telegraphic transfer explains the trade-offs in more detail, and our guide on how to verify a Brazilian meat exporter covers the checks to make before any payment.

The fastest way to an accurate price is to send every variable in the first message. Copy the fields below into your request for quotation:

Product and cut:
Grade or calibration (if required):
Quantity (MT or number of containers):
Packing preference:
Destination port and country:
Required Incoterm:
Required certifications for the destination:
Target shipment window:
Payment terms proposed:

Sending these together typically removes a round of back and forth, because the exporter can check establishment eligibility, packing and freight in one pass. You can send them for frozen chicken cuts and whole birds, frozen beef cuts or frozen pork cuts through our export quote request form.