Meat exports to return unimpaired by ‘mad cow’ disease by April, says association

The Brazilian Foreign Trade Association (AEB) predicts that the confirmed case of mad cow, which led the federal government to suspend beef exports to China, should not cause major losses to Brazilian exporters, only a postponement of sales. Moreover, as it is an isolated case, it is reasonable to assume that the national herd isn’t contaminated, and the fact that Brazil made the problem public and paralyzed shipments also tends to facilitate the fast resumption of exports, which revolve around US＄ 500 million per month.

“The impact tends to be much smaller than in 2021, when the country’s last mad cow case was recorded. The protocol was followed, and everything was completed with accuracy and transparency. Furthermore, because no meat is left on the market, no country can meet China’s demand in our place. As a result, we believe that the situation will be normalized in about 30 days and that the beef trade will return to normal in April,” says José Augusto de Castro, executive president of AEB.

Brazil is the largest beef exporter, supplying 22% of the global market. However, according to AEB, product prices are falling — in January of this year, the quotation was USD 4.8 thousand per ton against USD 5.2 thousand in the same month last year, a reduction of 7.5%.

“It’s interesting that the amount shipped increased by 10.8% in January. Statistics show that the product’s price is falling, including in the domestic market. If some volumes that would otherwise go to China are diverted to meet domestic demand, the drop here could worsen,” Castro concludes.

Source: Comex do Brasil

To read the original news report, please access: https://www.comexdobrasil.com/exportacoes-de-carnes-nao-devem-ser-prejudicadas-por-caso-da-vaca-louca-e-serao-retomadas-em-abril-projeta-aeb

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