January 9, 2009

Despite sanitary issues that are haunting beef exports, Brazil is still a top global beef exporter.

Brazil is locked out of 56 percent of the world's beef importing countries due to foot-and-mouth disease restrictions, but the country still accounts for 32 percent of global beef exports.

Unlike Australia or New Zealand, Brazil is not protected by a coastline and viruses do not recognise land borders, according to Fernando Galletti de Queiroz, CEO of Minerva SA, Brazil's third largest beef producer. 

Brazil is sending vets to improve the sanitary status of its neighbours and eliminate the source of problems. There are 10 countries that share borders with Brazil, who has already started on the massive project of clearing the whole South American continent by donating vaccinations and technology.

The move will open up new and lucrative markets to Brazil, and the building of roads to connect Brazil to the Pacific Ports is currently underway, as all Brazilian beef exports leave via the Atlantic ports, making the shipping costs to Asia uncompetitive, said Queiroz.

Brazil has 394 million hectares available for beef production but only 68 million hectares are currently used. Realising the problems of feeding cattle on grain, Brazil only fattens 1.3 percent of its herd in feedlots. Brazil is now moving towards intensive grazing systems due to an abundance of water supply in the region. 

Brazil has barely scratched the surface of what is possible in terms of beef production, according to Queiroz.