March 3, 2020

 

US beef industry concerned over USDA liftingban on Brazilian beef imports

 

The US Department of Agriculture (USDA) lifted a ban on imported fresh beef from Brazil imposed in 2017, raising concerns as Brazilian beef costs 30% less than US meats, reported Arkansas Democrat Gazette.

 

The ban was originally imposed after bribery reports connected to meat inspectors from Brazil. Police in Brazil had found evidence of bribed inspectors and politicians after raiding several meatpacking plants.

 

After the ban was imposed, Brazilian raw pork, beef extracts and cooked products were allowed to be imported by the USDA.

 

The USDA's Food Safety and Inspection Service permitted Brazilian raw beef for imports after an audit was done on Brazil's current inspection system. However, raw beef processed before February 21, 2020 is not eligible to be imported.

 

Brazil is the biggest exporter of beef to the world. Brazilian ground beef and fine carcass trim products are still not allowed to be imported to the United States.

 

Beef producers and industry groups in the United States reacted to the USDA announcement negatively, with concerns over the safety of Brazilian beef and how it might impact the domestic supply chain.

 

The National Cattlemen's Beef Association said it was troubled over Brazil's past violations in food safety and previous cases of foot-and-mouth disease. The association also said there are worries over the use of "Product of USA" label, where the USDA has come under fire for permitting imported beef to be granted the label if the meat was processed in the United States.

 

Scott Clawson, Oklahoma State University farm economist said the labelling practices could be a problem, adding that the United States had always been a minor Brazilian beef importer focused on precooked specialty items.

 

Clawson said the USDA decision comes at a time when commodity prices are low and input costs are high during an increased domestic supply period, with incoming Brazil imports sure to affect domestic beef prices.

 

Less than 15% of beef in the United States are imported. Tariffs are imposed to limit imports of foreign beef, with Brazil in the "other" category under the USDA tariff structure. This means Brazil can only export 64,000 tonnes of beef total to the United States before a tariff of 26.4% is imposed.

 

Cattle producers' lobbying group R-CALF USA said US$1.2 billion is spent in Brazil to subsidise cattle production, which results in 33% lower costs compared to beef from the United States.

 

Travis Justice, Arkansas Farm Bureauchief economist said raw beef from Brazil will largely be used in foodservice like fast food and not appear in retail. He said in the past, manufacturers combine imported lean trim with fat trim from the United States for burgers, so imported meat complements the industry too.

-      Arkansas Democrat Gazette