May 16, 2008

US producers eye EU beef market

Ranchers in the US are targeting the EU's beef market to take advantage of the opportunities there.

According to John Brook, Europe director of the US Meat Export Federation (USMEF), there is an unprecedented opportunity for the export of US beef to the EU.

Dairy exports from the US are leading the world market, and the weakness of the US dollar is boosting export opportunities.

The ban on Brazilian beef also created an opportunity for US producers.

Last year, almost two-thirds of EU beef imports came from Brazil, which shipped 24,000 tonnes. All Brazilian farms, however, were de-listed by the European Commission in February.

Only 95 farms have been approved for export to the EU since March 15. This is very low compared with more than 3,000 previously.

The USMEF projects Brazil's EU-approved beef production will be severely limited for the rest of the year.

Importers in the EU are questioning the reliability of beef suppliers in Argentina, where trade disruptions have driven prices to record levels.

In addition, USMEF said that European Commission's beef deficit prediction may understate consumption trends as citizens in 12 member states admitted to the EU since 2004 are likely to increase beef consumption as their economies grow.

The US has increased its beef exports to the EU by 137 percent last year, reaching 7,961 tonnes.