February 27, 2006

Brazil FMD case could grow EU market for US beef

US beef exporters are hopeful that EU consumers, irked by multiple cases of foot-and-mouth diseases in Brazil's cattle, would begin to find grain-fed beef from the US attractive.

There is an EU quota on US beef imports at present because of the use of hormones in US production, leaving Brazil and Argentina the dominant players in the beef market.

Jim McAdams, National Cattlemen's Beef Association past-president, said Europe is a region with huge potential for US beef. However, he cautioned that they might be more interested in lower value products. The US should avoid a price war with Brazil and open markets to high - quality US beef, McAdams said.

Lynn Heinze, US Meat Export Federation, said the likelihood of US beef penetrating further into the EU countries has improved.

With the EU facing a 500,000 tonne beef deficit by 2010, US beef may look increasingly attractive.

US beef exports by volume in December 2005 were up 47 percent compared to 2004. However, that total is still just 35 to 40 percent of what the US beef exports were in 2003.

US exports are recovering from the mad cow issue in 2003 but it still has some ground to recover. US beef exports would be greatly boosted if Korea and Japan can be persuaded to take US beef, Heinze said.