May 10, 2007

EU threatens absolute ban on Brazil beef

Brazil's animal health authorities have been indefinitely advised by EU officials it will impose a total ban on imports of beef by the end of the year unless it meets the standards of welfare, traceability and residue testing match those of Europe.

An EU veterinary mission to Brazil in March reported that although some progress has been made, there are still several concerns to be met particularly on animal health and the control and use of vaccines.

A ban on imports from three provinces in Brazil has been in place since October 2005, largely as a result of a major outbreak of foot-and-mouth disease. The three provinces, Mato Grosso do Sul, Parana and Sao Paulo, accounted for 60 per cent of Brazilian exports of beef.

The ban is expected to result in a major decline in trade with the EU. But this has not been borne out in practice, with a fall of just over 5 per cent in 2006.

This in turn has raised serious concerns over the movement of both live cattle and carcases between provinces in this vast country.

Last year Brazil exported 333,000 tonnes of beef to the EU. UK imported 4,951 tonnes Brazilian beef at the start of the year, which suggests that over a full year months the total will be about 30,000 tonnes.

The total ban would have major implications for the rural economy in Brazil, a country that has the fastest expanding beef industry in the world.

Imports of beef from most developing countries to the EU are subject to tariffs, but the World Trade Organisation is keen to have this phased out over several years. Such a policy would be highly detrimental to EU producers, a fact highlighted earlier this week by John Bryan, the chairman of the Irish Farmers' Association's livestock committee.

He said that the European Commission can no longer ignore the failure of Brazil to meet the standards in Europe and should not delay decisions any longer.