April 29, 2008

Brazil's success story in beef production to continue

If there is a fairytale in the agricultural scene, it must have been in Brazil's beef sector.

In 1993, the country was the world's largest importer of beef. Fifteen years later, it has become the world's largest exporter.

This was despite the country being banned in 56 percent of the world's import market including major ones like Japan and South Korea. Furthermore, exports, which hit 2.5 million  tonnes last year, are still expanding.

The country now accounts for a-third of beef exports worldwide.

Currently, almost all of the country's beef exports leave via the Atlantic coast, but Minerva SA, the country's third biggest exporter, says roads are being built to connect beef producing regions to the Pacific for the day when South Korea  and Japan would be ready to import Brazilian beef

One reason holding Brazil back is Foot-And-Mouth disease which caused the country's beef to be banned in many countries. Brazil is working with neighbouring countries by donating vaccinations and other aid to improve their sanitary status and eradicate the problem at the source.

Meanwhile, there remains huge potential for expansion in beef production: out of a possible 394 million hectares suitable for cattle raising, Brazil has barely used a fifth, or about 70 million  hectares.

All that land may not be needed however: the industry is moving towards more intensive grazing systems as it expands, according to market watchers.