October 7, 2010

Uruguay eyes EU tariff-free feedlot beef quota

Uruguay is optimistic about taking a share of the tariff-free 20,000 tonnes of the feedlot beef quota which the EU establishes annually.

The dossier with all the requested information has been sent to the EU and if finally approved would further boost the Uruguayan cattle and meat industries which are experiencing one of its best moments in history.

The EU quota with preferential tariff for beef from cattle fed on grains has been set at 20,000 tonnes for the next three years and will then increase to 45,000 annually.

Fernando Perez Abella, deputy head of the Uruguayan National Meats Institute (INAC) said the approval is also a challenge for Uruguayan livestock farmers since they have been "pushed aside" from the best farmland by agriculture and will have to adapt to the new scenario which is the feed-lot system for the final fattening of cattle.

The EU has an annual quota of high quality beef totalling 60,000 tonnes of the so called 'Hilton cuts' which has an ad valorem tariff of 20%. The US has 19% of the total quota equivalent to 11,500 tonnes.

Abella said that Uruguay has a privileged position as a world producer and exporter of top quality beef, but faces insufficient cattle supply to exploit that potential.