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Uncertainty Underpins Market For Brazilian Beef In Advance Of EU Regulations

Published: Jan 28, 2008

Hong Kong                                                                                 

Uncertainty Underpins Market For Brazilian Beef In Advance Of EU Regulations

USMEF-Hong Kong reports that uncertainty surrounds the market for Brazilian beef in advance of the new restrictions imposed by the European Union due January 31. Sources told USMEF that expectations had risen in recent weeks that more farms than originally envisioned may get EU approval. Prices of cattle from EU-approved farms are expected to rise, but no one knows what will happen to prices of cattle from unapproved farms.  Brazilian beef plants are now running at 60 percent capacity in anticipation of the new regulations being finalized on Thursday. USMEF understands that EU-approved Brazilian plants will slaughter only cattle from EU-approved farms. Recently, China has been buying more Brazilian forequarter meat and (especially) shin/shank as well as large volumes of offal. The trade is, however, unauthorized since China has yet to approve any Brazilian plants despite reaching a veterinary agreement.

On a related point, between November and the second week in January, select boneless short rib offer prices have increased by around 38 percent in anticipation of the potential Korean market opening. USMEF expects to see continued prohibitively high prices for U.S. short ribs in the near term and in response is promoting chuck eye rolls and top blade muscle in Hong Kong

Short Supply, High Prices Of Chinese Pork Augur Well For U.S. Pork In 2008

USMEF forecasts that Chinese pork will remain in short supply and high in cost in the first half of 2008. Pork prices in Hong Kong jumped some 30 percent in 2007. During the past 8 weeks, prices of Brazilian cuts such as butt and loin rose dramatically and are close to U.S. prices, though one company reported a 20 percent difference. As U.S. pork gains competitiveness, USMEF is working with several prominent importers and retailers to expand the presence of U.S. pork on menus and supermarket shelves.

Hong Kong                                                                                 

Uncertainty Underpins Market For Brazilian Beef In Advance Of EU Regulations

USMEF-Hong Kong reports that uncertainty surrounds the market for Brazilian beef in advance of the new restrictions imposed by the European Union due January 31. Sources told USMEF that expectations had risen in recent weeks that more farms than originally envisioned may get EU approval. Prices of cattle from EU-approved farms are expected to rise, but no one knows what will happen to prices of cattle from unapproved farms.  Brazilian beef plants are now running at 60 percent capacity in anticipation of the new regulations being finalized on Thursday. USMEF understands that EU-approved Brazilian plants will slaughter only cattle from EU-approved farms. Recently, China has been buying more Brazilian forequarter meat and (especially) shin/shank as well as large volumes of offal. The trade is, however, unauthorized since China has yet to approve any Brazilian plants despite reaching a veterinary agreement.

On a related point, between November and the second week in January, select boneless short rib offer prices have increased by around 38 percent in anticipation of the potential Korean market opening. USMEF expects to see continued prohibitively high prices for U.S. short ribs in the near term and in response is promoting chuck eye rolls and top blade muscle in Hong Kong

Short Supply, High Prices Of Chinese Pork Augur Well For U.S. Pork In 2008

USMEF forecasts that Chinese pork will remain in short supply and high in cost in the first half of 2008. Pork prices in Hong Kong jumped some 30 percent in 2007. During the past 8 weeks, prices of Brazilian cuts such as butt and loin rose dramatically and are close to U.S. prices, though one company reported a 20 percent difference. As U.S. pork gains competitiveness, USMEF is working with several prominent importers and retailers to expand the presence of U.S. pork on menus and supermarket shelves.