March 4, 2008

Ireland's beef finishers advised against panic selling as Brazil resumes exports

Irish farming organizations were advised not to panic sell their cattle in reaction to the latest lifting of the ban on Brazil's beef.

Beef prices are expected to remain high as there is still scarcity in the EU market despite the reintroduction of beef exports from 106 Brazilian companies.

Cattle prices across the country remain steady with R grades making 336c/kg and Os making 327-330c/kg.

The lifting of the ban on Brazilian beef will do little to alleviate the problem of scant supplies, with just 86,000 cattle reported to be on the 106 Brazilian farm, industry observers said.

Furthermore, EU's low supply will be aggravated by Argentina's decision to curb its beef exports, analysts said. 

In 2007, beef volumes shipped to the EU were 6 percent higher at more than 77,000 tonnes, with most of the increase seen in processed beef, which increased by 30 percent to 21,000 tonnes.

Padraig Brennan of Bord Bia, Ireland's Food Agency, said the lifting of the Brazilian ban was unlikely to have a major effect on EU markets.

Brennan pointed that the number of approved Brazilian farms is relatively small. He added that even if the farms are large, they will not be in a position to send the same volume of beef they were sending last year.