December 7, 2009

Chile may re-certify 22 Brazilian beef plants early next year

Brazil's beef access to Chile could soon increase, with 22 plants expected to be re-certified in February 2010 after a recent inspection by Chilean inspections.

Chile's Brazilian beef imports have increased this year after 16 plants in Brazil were re-certified in May this year. A total of 18 plants in Brazil are now certified for exports to Chile, after the country lifted a ban imposed on Brazil in 2005 due to outbreaks of the foot-and-mouth disease (FMD).

Brazilian beef exports to Chile during January to October jumped 422 percent on-year to 3,764 tonnes swt, but were still below the 22,442 tonnes swt supplied to Chile in 2005.

Over the ten-month period, Brazil was the third largest beef supplier to Chile, after Paraguay at 16,717 tonnes swt and Argentina at 13,296 tonnes swt.

Chile's imports of Australian beef have dropped 76 percent over the period to 863 tonnes. Australian beef supplies to Chile surged in 2008 because of low supplies from Brazil and Argentina and higher prices from Uruguay and Paraguay.

The Brazilian Beef Exporters Association (ABIEC) said Brazilian packers could sell with margins close to zero percent in order to recover the Chilean market.