April 20, 2007

Brazilian beef exports seen to rise despite FMD

Brazilian beef exports are projected to grow 13 percent in 2007, despite restrictions imposed in some states following the FMD outbreak in October 2005, report by the United States Department of Agriculture (USDA).

The rise was attributed to Brazil's increasing capacity to supply beef demand abroad and some meat processors redirecting exports to plants located in states not affected by the ban. The increase in exports are also due to diversified product mix to non-traditional markets such as the Middle East and North Africa as its traditional EU and Russian markets continue to impose partial bans on exports.

According to the USDA, Brazilian beef production will rise 3.4 percent in 2007 because of firm domestic demand, expanding exports to non-traditional markets and improved pastures and profits.