December 27, 2007

Brazilian beef restrictions may improve EU and UK markets

Tighter export requirements on Brazil's beef exports could boost the UK and EU beef markets, according to analysts.

New traceability requirements for Brazilian beef exporters effective January is seen to prevent 97 percent of the country's farms from exporting beef to the EU.

Beef economist Mark Topliff said the impact is yet to be seen as this translates into volumes of meat, given that some units that meet the criteria will be among Brazil's largest.

Topliff said the given restrictions will prevent a "significant proportion of Brazilian beef being imported, it will impact on EU and UK beef markets and give a boost to prices."

He said restrictions would worsen the established beef import requirement for the EU and this would also relieve some of the downward pressure placed on EU prices by low-priced Brazilian beef.

Thomas Binns, chairman of the National Farmers Union said it would 'undeniably lead to further contraction of beef availability in the European market at a time when supply and demand is tightening'.