January 23, 2013

Scottish beef producers may receive lower and more volatile prices due to the removal of trade restrictions on beef imports from Brazil, according to Quality Meat Scotland's Head of Economics Services, Stuart Ashworth.

Speaking at an 'EU Imports and CAP' seminar in Bridge of Allan, Mr Ashworth reminded producers of the background to the current trade restrictions with Brazil.

"Initial restrictions on Brazilian trade with the UK and Europe were applied in 2008 because Brazil could not provide sufficient guarantees on product safety. In simple terms, Brazil could only supply Europe from an authorised list of approved cattle farms," said Mr Ashworth.

"Not surprisingly, UK imports from Brazil fell 80% between 2007 and 2008 and continued to fall through until 2011. During 2012, however, imports doubled but still remain about 85% lower than in 2007."

In addition to the approved farm requirement, the European market is also shielded as a result of significant import tariffs.

According to Mr Ashworth, it looks unlikely that under current trade arrangements Brazil will be able to, or even wish to, supply increased quantities of beef to the UK or Europe.

However he told producers at the event, organised by the Scottish Beef Cattle Association, the NBA (Scotland) and the NSA (Scotland), that there was little doubt Brazil would like these tariffs reduced either through WTO, Mercosur or bilateral agreements.

There would be several impacts on Scottish producers, he said, if this trade restriction is removed.