January 25, 2013

UK 2012 beef imports from Brazil double

During 2012, UK imports of Brazilian beef doubled, but trade restrictions mean import levels are still 85% lower than in 2007.

Speaking at a recent "EU Imports and CAP" seminar in Bridge of Allan, Quality Meat Scotland (QMS) head of economic services Stuart Ashworth said that since trade restrictions were placed on Brazil in 2008, beef imports to the UK fell by 80% between 2007 and 2008, and continued to fall until 2011.

The European market was shielded from these imports as a result of significant import tariffs, however if trade restrictions were lifted, Scottish farmers faced the prospect of lower and more volatile beef prices, he warned.

Speaking to delegates at the seminar, Ashworth said there was little doubt Brazil would like to see these import tariffs reduced either through the World Trade Organisation, the Mercosur meat trade deal or bilateral agreements.

The potential consequence of this would be greater volatility in prices as a result of global trading conditions in respect of supply and demand, as well as exchange rate movements between major trading partners, he said.

"It is impossible to say with certainty what a greater volume of Brazilian beef on the European market would do for Scottish producer prices," added Ashworth.

"However, it is almost certain that it would lead to lower farm gate prices and greater volatility in those prices."