September 3, 2007

 

Brazil's Sao Paulo beef exporters lost US$1 billion on OIE ban

 

 

The ban by World Organisation for Animal Health (OIE) on Brazilian beef shipments on disease outbreaks has cost exporters from the Sao Paolo state US$1 billion on profit loss, according to the state's agriculture secretary, Joao de Almeida Sampaio Filho.

 

Sampaio said Thursday the state's two biggest exporters EU and Chile have stopped importing due to OIE's ban despite affected area's distance is 1,500 kilometres away.

 

The OIE banned beef from the state of Sao Paulo because it imports much of its cattle from Mato Grosso do Sul, Brazil's No. 1 ranching state, where the 2005 outbreak occurred.

 

The OIE also banned beef from Parana state in 2005, when cattle transported from Mato Grosso do Sul to the state also were found to be infected.

 

Still, no outbreak was reported in Sao Paulo state, Brazil's No. 1 beef exporting state. Sampiao said the last foot-and-mouth-disease (FMD) outbreak was 12 years ago, stating the ban is "unjustified".

 

Sao Paulo's exporters were able to limit their losses by exporting to the Middle East and Asia. However, these are low-priced markets compared to EU, the state agriculture said.

 

Because Brazil competes against UK beef exporters in the European Union, Brazilian farmers and politicians have alleged that the EU's ban is still in place for protectionist reasons and not because of health concerns.

 

British meat and livestock exports to the EU were banned earlier this month after an outbreak of FMD in southern England was confirmed on Aug. 3, but the ban was lifted three weeks later.

 

Brazil's Agriculture Ministry said last week that it hopes that the OIE will lift its export ban by the end of this year.

 

The last outbreak of FMD disease in Brazil was detected in April 2006, in Mato Grosso do Sul.

 

An EU commission will visit Brazil in October to assess health controls implemented in the country's ranching regions. Sampiao hopes that the ban will be lifted this year.

 

Brazil is the world's No. 1 beef exporter.

 

The country exported 2.4 million tonnes to world markets last year and will increase by 10 percent this year to more than 2.6 million tonnes.