December 31, 2003

Brazil To Export More Meat In Mad Cow Aftermath

Brazil could see an increase in meat exports following the first U.S. case of mad cow disease. As a result, Brazilian meat exporters expect to benefit from a revision of rules that will boost their medium term exports.

Since the discovery of mad cow disease in the U.S. a week ago, more than a dozen countries stopped importing U.S. beef causing consternation in the $27 billion a year U.S. industry.

"We expect a revision of sanitary rules, higher prices and a medium-term boost to our exports," said Marcus Vinicius Pratini de Moraes, president of the Brazilian Association of Meat Exporters.

Brazilian meat exports have been restricted by rigid sanitary rules to protect against foot-and-mouth disease.

Pratini, formerly Brazil's agriculture minister, said that although 82% of the Brazilian herd is now free of the disease, half the international market, including Japan and South Korea, still rejects Brazilian meat.

Brazil's Agriculture Minister Roberto Rodrigues has said that Brazil could export more poultry and pork as a result of the discovery of mad cow disease in Washington State last week.

The Brazil-Japan Chamber of Commerce estimates that Brazilian meat exports to Japan could rise 20% in the first half of 2004.

Japan, formerly one of the biggest importers of U.S. beef, last week banned U.S. beef purchases.

"The (Japanese) reaction is slow. They have stocks, but when they try our meat they will see it's of good quality," said Gervasio Iwamoto, marketing director at the Brazil-Japan Chamber of Commerce, noting strong sales promotion.