EU Expected To Significantly Reduce Number Of Brazilian Farms Eligible For Beef Exports...

EU/Brazil                                                                                    

EU Expected To Significantly Reduce Number Of Brazilian Farms Eligible For Beef Exports

According to information provided by the European Livestock and Meat Trading Union (UECBV), the European Commission will propose to member states on Wednesday (Dec. 19) that the EU significantly reduce the number of farms in Brazil that are approved to export beef to the EU. This move follows the most recent inspection visit by EU vets to Brazil last month that reportedly turned up a number of deficiencies in controls on identification and movement of cattle. It is understood that the results of this inspection visit raise a number of concerns about Brazil’s ability to ensure that only beef from cattle that are free of foot-and-mouth disease is exported to the EU. According to the UECBV, Brazil and the EU will jointly draw up a list of farms that are approved to export to the EU. Currently, there are more than 6,000 farms in Brazil’s registration and identification database that are located in zones approved for export to the EU.

Speculation in European trade circles suggests that the initial list of farms approved for export to the EU will be reduced significantly and may not number more than a few hundred. Although the effective date of these new restrictions is not known, the expectation is that implementation may come before the end of September.

Although due to its superior quality and higher price U.S. beef does not compete directly with Brazilian beef, USMEF-Europe reports that a shortage of hindquarter cuts destined for the EU HRI sector that would result from a dramatically reduced Brazilian supply would increase the demand for U.S. beef.

The EU-25 imported 255,936 mt of beef from Brazil in 2006, 66 percent of its total beef imports. Through August 2007, imports from Brazil totaled 198,849 mt, an increase of 16 percent over the same period in 2006. About 36 percent of beef imported from Brazil is frozen, another 36 percent is prepared/preserved, and 27 percent is chilled.

EU/Brazil                                                                                    

EU Expected To Significantly Reduce Number Of Brazilian Farms Eligible For Beef Exports

According to information provided by the European Livestock and Meat Trading Union (UECBV), the European Commission will propose to member states on Wednesday (Dec. 19) that the EU significantly reduce the number of farms in Brazil that are approved to export beef to the EU. This move follows the most recent inspection visit by EU vets to Brazil last month that reportedly turned up a number of deficiencies in controls on identification and movement of cattle. It is understood that the results of this inspection visit raise a number of concerns about Brazil’s ability to ensure that only beef from cattle that are free of foot-and-mouth disease is exported to the EU. According to the UECBV, Brazil and the EU will jointly draw up a list of farms that are approved to export to the EU. Currently, there are more than 6,000 farms in Brazil’s registration and identification database that are located in zones approved for export to the EU.

Speculation in European trade circles suggests that the initial list of farms approved for export to the EU will be reduced significantly and may not number more than a few hundred. Although the effective date of these new restrictions is not known, the expectation is that implementation may come before the end of September.

Although due to its superior quality and higher price U.S. beef does not compete directly with Brazilian beef, USMEF-Europe reports that a shortage of hindquarter cuts destined for the EU HRI sector that would result from a dramatically reduced Brazilian supply would increase the demand for U.S. beef.

The EU-25 imported 255,936 mt of beef from Brazil in 2006, 66 percent of its total beef imports. Through August 2007, imports from Brazil totaled 198,849 mt, an increase of 16 percent over the same period in 2006. About 36 percent of beef imported from Brazil is frozen, another 36 percent is prepared/preserved, and 27 percent is chilled.