January 11, 2008

EU beef prices to rise as supplies from Brazil and Argentina dwindle

EU cattle farmers are expecting to see higher prices for their beef as Argentina  extends limits on its beef exports.

Argentina's recent decision to extend restrictions on beef exports to March 31, made in response to curb rising inflation in the country coincides with the EU's recent decision to impose more restrictions on beef from Brazil after the latter was deemed to have failed food safety standards.

Brazil and Argentina are two major beef suppliers to the EU.

Brazil exported 254,000 tonnes of beef to EU in 2006, while Argentina  exported 64,000 tonnes. 

Brazil recently sent a delegation to protest tighten restrictions and threatened to launch a formal complaint to the WTO should the EU fail to prove its case. 

The EU has allowed consignments of de-boned and matured beef from Brazil which were certified and dispatched before the latest restrictions to be imported to the EU until March 15.