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Brazilian Beef
Cow and Calf weekly 3/13/05
"Brazil Halts Beef Shipments To The U.S.
Brazil's Ag Ministry voluntarily halted shipments of beef products to the U.S. last week. Ministry officials say all 28 Brazilian companies licensed to ship processed beef to the U.S. suspended exports until further notice. The government suspended shipments after U.S. plant inspectors found inconsistencies in Brazil's sanitary inspection system and inspection problems in individual packing plants. The U.S. will now undertake a plant-by-plant review funded by the meat packers.
One of the main inconsistencies was the hiring of inspectors. For lack of federal resources, many plant sanitary inspectors are hired by the companies or through agreements with states and municipalities. Brazil has promised more oversight of the plants in question.
Due to foot-and-mouth disease (FMD) in some regions, Brazil was able to ship only "thermally-treated" beef -- not fresh beef -- to the U.S. Although 15 of Brazil's 27 states are declared "FMD free with vaccination," the entire country is required to have this rating before it can export fresh beef and pork into North America.
The export suspension may be reviewed in as little as three weeks, but Brazilian officials believe it could take a year to regain U.S. markets. Brazilian meatpackers don't foresee significant losses as the U.S. accounts for about 8% of Brazil's beef export market. But there are those who believe the U.S. ban could encourage other countries to demand tougher sanitary controls, and Brazil doesn't want to jeopardize its world-leading beef exporter status.
The Brazilian meat sector has been furious over cuts of ministry sanitary and phytosanitary control program budgets. Those cuts were announced last month by Brazilian president Luiz Inacio Lula da Silva.
"This shows the low importance the government gives to the meat sector," says Vicente Ferraz, analyst of FNP Consultoria.
The ag ministry says it will release R$40 million (US$15 million) for sanitary defense, linked to other stipulations, in order to implement the changes necessary to regain the U.S. beef export market. "
Brazilian Beef
Cow and Calf weekly 3/13/05
"Brazil Halts Beef Shipments To The U.S.
Brazil's Ag Ministry voluntarily halted shipments of beef products to the U.S. last week. Ministry officials say all 28 Brazilian companies licensed to ship processed beef to the U.S. suspended exports until further notice. The government suspended shipments after U.S. plant inspectors found inconsistencies in Brazil's sanitary inspection system and inspection problems in individual packing plants. The U.S. will now undertake a plant-by-plant review funded by the meat packers.
One of the main inconsistencies was the hiring of inspectors. For lack of federal resources, many plant sanitary inspectors are hired by the companies or through agreements with states and municipalities. Brazil has promised more oversight of the plants in question.
Due to foot-and-mouth disease (FMD) in some regions, Brazil was able to ship only "thermally-treated" beef -- not fresh beef -- to the U.S. Although 15 of Brazil's 27 states are declared "FMD free with vaccination," the entire country is required to have this rating before it can export fresh beef and pork into North America.
The export suspension may be reviewed in as little as three weeks, but Brazilian officials believe it could take a year to regain U.S. markets. Brazilian meatpackers don't foresee significant losses as the U.S. accounts for about 8% of Brazil's beef export market. But there are those who believe the U.S. ban could encourage other countries to demand tougher sanitary controls, and Brazil doesn't want to jeopardize its world-leading beef exporter status.
The Brazilian meat sector has been furious over cuts of ministry sanitary and phytosanitary control program budgets. Those cuts were announced last month by Brazilian president Luiz Inacio Lula da Silva.
"This shows the low importance the government gives to the meat sector," says Vicente Ferraz, analyst of FNP Consultoria.
The ag ministry says it will release R$40 million (US$15 million) for sanitary defense, linked to other stipulations, in order to implement the changes necessary to regain the U.S. beef export market. "
