June 21, 2004

Brazil's Foot-And-Mouth Case Seen Having No Impact On Argentina

A recently discovered outbreak of foot-and-mouth disease in Brazil will have virtually no impact on Argentine beef exports, industry sources said Friday.
 
Brazilian Agriculture Ministry officials said Thursday that three animals had been diagnosed with the disease on a farm in the northern state of Para.
 
This is the first foot-and-mouth outbreak in 34 months in Brazil, which was on track to become the world's No. 1 beef exporter this year.
 
"This is not going to have any impact or any importance for Argentina," said Miguel Schiariti, who serves on the board of Argentina's Beef Industry Chamber. "This is a small case that was found in northern Brazil. It wasn't even found in a region where they export beef. Its impact on Brazil's own exports may not even be that important."
 
Argentina, the world's No. 8 beef exporter, according to the Agriculture Secretariat, is familiar with the damage that foot-and-mouth disease can do.
 
Argentina had a widespread outbreak in March 2001 that led most of the country's 70-some export markets to close their doors to Argentine beef. Now, most of those countries are again importing but major markets - such as the U.S., Canada, Mexico and Japan - remain closed.
 
Most analysts in Brazil believe the outbreak is unlikely to have a major impact on beef exports. If it did, it could conceivably open a door for Argentina, which might be able to fill any void created by a decline in Brazilian exports.
 
But this is unlikely to happen, Argentine and Brazilian analysts say.
 
The farm where the outbreak occurred is some 700 kilometers from the nearest exporting region and presents no real threat to major beef operations, Fabiano Tito Rosa, analyst at the Scot Consultoria ranching consultancy in Sao Paulo state.
 
Para does not export beef precisely because of the foot-and-mouth disease risk. The World Organization for Animal Health, known as the OIE, recently refused foot-and-mouth-free status to south and central Para.
 
"Argentina will not suffer or benefit from this," said Mario Rabetino, spokesman for the Argentine Beef Association. "We're still studying the issue, but I don't think there will be any consequences for Argentina. This will not have any impact on our own exports."
 
Argentina expects to export between 400,000 and 420,000 metric tons of beef in 2004, according to Agriculture Secretariat estimates. This hardly compares with the 1.35 million tons that Brazil is expected to export.