December 19, 2007
Brazilian beef exports unlikely to be unaffected by new EU measures
The EU's announcment that it will toughen restrictions on Brazilian beef are unlikely to impact Brazil's exports to the region, according to industry watchers.
The issue will be discussed in an EU Commissioners' meeting today (December 19, 2007) and the measures will be decided on Dec. 20, according to an EU spokesperson.
Although the exact measures are unknown, it is expected that certain certification agencies, ranches and meat packing facilities in Brazil would be closed to the European beef market.
The EU announced last week it would impose further restrictions on Brazilian beef after its inspectors reported problems with traceability and vaccination in Brazilian facilities and ranches.
The EU already has bans on three states: Mato Grosso do Sul, Parana and Sao Paulo due to foot-and-mouth disease concerns.
Two-thirds of the beef consumed in the EU comes from Brazil.
EU imports of fresh beef from Brazil (Jan-Oct 2007)
|
|
2007 volume (tonnes) |
2007 value |
2006 volume (tonnes) |
2006 value |
|
|
16,301 |
$109 million |
15,961 tonnes |
$96 million |
|
France |
5,667 |
$24.6 million |
5,380 |
$20.2 million |
|
Holland |
45,100 |
$275.8 million |
45,749 |
$253.5 million |
|
UK |
23,233 |
- |
62,406 |
- |
Most EU countries saw an increased volume of Brazilian beef import last year, except for the UK, where volumes dropped by more than half due to intense lobbying by local cattle producers.
If EU were to impose restrictive measures only on selected states, meatpackers would shift their operations to unaffected areas, which is why Brazilian meat packer Sadia is holding back from announcing its planned location for two new meat plants until the EU makes its decision.
The shifting of operations is also why Brazilian beef exports to the EU remains relatively unaffected even with partial bans on three of the most productive states.
Even though EU may impose restrictions, it is a fact that the region needs meat and would have to compete with a resurgent Russia for Brazil's beef supplies: Russians, with growing affluence due to higher energy prices and stable political climate, are switching to better diets. The country recently lifted bans on several Brazilian states.
However, there were others who thought Brazil should adopt a more aggressive stance against what they thought were trade protectionist measures from the EU.
This especially true for activist groups in the UK, who have been urging an outright ban on Brazilian beef.
