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Foot & Mouth in Brazil

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Sandhusker

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Brazil beef banned for foot-and-mouth
The world’s largest beef exporter announced an outbreak of foot-and-mouth disease earlier this week. The repercussions for that country’s beef industry could be devastating. Right now, Brazil’s largest buyers, Russia and the European Union, have suspended imports from the Mato Grosso do Sul state in Brazil. However, they will continue buying beef from other Brazilian states. Chile has also suspended imports from that state for the next six months. Uruguay, which already banned beef on the hoof and bone-in beef, included boneless beef and pork from Brazil in its ban. South Africa and Israel also suspended imports. Brazilian beef exports have risen to nearly $2 billion, up 34 percent over the same nine months last year.
 

PORKER

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BEEF NEWS
Brazil beef boycott widens

by Pete Hisey on 10/24/2005 for Meatingplace.com


Ten more countries have at least partially banned the import of beef products from Brazil in the wake of a foot-and-mouth disease outbreak in Mato Grosso do Sul, the largest beef-producing state in the country.

These include Bolivia, Mozambique, Ukraine, Egypt, Namibia, Norway, Peru, Uruguay, Singapore and Paraguay. They join at least 30 others that already have banned at least some imports, including the 25 countries of the European Union, Russia, South Africa, Cuba, Israel, Chile and Argentina.
 

Jake

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may I say... WOO HOO! I for one am totally opposed to having South American imports of beef into the US. I think that the USA, Canada, Australia, and possibly Mexico should band together and create a meat OPEC. The largest part being concerned with Beef. Just a dream because who listens to a snot nosed kid.
 

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Description of F/M affected population: fattening cattle reared on pasture. There have been no reports of suspected cases in species other than bovines.

In Japorã district, surveillance activities led to the detection of four new outbreaks, on the basis of a clinico-epidemiological diagnosis:

- The first farm has 253 cattle, 16 of which (1 animal aged less than 4 months, 9 animals aged between 12 and 24 months and 6 animals aged over 24 months) were sick.

- The second farm has 52 animals, 12 of which (7 aged between 12 and 24 months, 5 aged between 24 and 26 months) showed clinical signs of foot and mouth disease.

- The third farm has 16 cattle (2 sick: one animal aged less than 4 months and one animal aged over 24 months).

- The fourth farm has 142 cattle, 20 of which (all aged between 12 and 24 months) presented clinical signs.

In Mundo Novo district, an outbreak was detected on the basis of a clinico-epidemiological diagnosis in a large herd of beef cattle totalling 777 animals. Five of these animals (aged over 24 months) presented clinical signs. The affected farm is very close to Japorã district.

Source of outbreaks: unknown or inconclusive (investigations in progress).

Control measures:

- Stamping out (in progress). Weather conditions (heavy rain) are hampering the culling and destruction of animals in the outbreaks.

- Disinfection of infected premises.

- To date, 924 farms with a total population of 122,578 cattle, 3,230 sheep and goats and 2,713 pigs have been inspected in the zone where a movement ban is in force.

- The municipalities of Eldorado, Iguatemi, Itaquiraí, Japorã and Mundo Novo remain under quarantine. Twelve checkpoints were set up to prevent any movement of FMD-susceptible animals or their products/by-products originating from these districts to national or international markets.

- The 25-km-radius safety zone around the new outbreaks lies completely within the boundary of the aforementioned five districts.

The control measures in the region involve the use of material and human resources from the Brazilian State and Federal governments, with assistance from the public forces at fixed checkpoints and mobile teams.
 

Mike

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UPDATE:

Brazil's Cattle Industry Continues To Battle FMD
Two weeks after foot-and-mouth disease (FMD) was discovered in Brazil, cattle and pig movement on dozens of farms in two states has been prohibited. Measures are being taken to contain the outbreak, which originated in the southern tip of the state of Mato Grosso do Sul. The disease is thought to have spread to the state of Paraná through mixing of animals at various livestock expositions held earlier in the month. In São Paulo, an additional 18 ranches were quarantined because they purchased animals at the expo in Paraná, although no signs of FMD have been detected.

FMD-related losses from beef exports are pegged at US$160 million during the final two months of the year, according to estimates made by the Brazilian Meat Exporters Association (Abiec). To date, 44 countries have placed temporary restrictions on fresh Brazilian beef. The U.S., Canada and Mexico do not presently import fresh beef from Brazil. Brazilian beef imports to North American are limited to thermally-treated product -- a measure that ensures against transmission the infective FMD organism.

The São Paulo State Farm & Ranch Defense Coordinator says the quarantine of the cattle farms in the state is a preventive measure. São Paulo agriculture secretary Duarte Nogueira says, "The interdiction is an example of excessive care on our part, since 14 days have passed since the arrival of the animals in the state and no symptoms of the disease have been identified." The properties will be quarantined until Nov. 6.

Meanwhile, Brazil's Finance Minister Antonio Palocci defended himself against criticism that funding for the nation's FMD surveillance and vaccination programs had been slashed over the past year. "There is no inefficiency in ministers and ministries," he says. "But there are bottleneck processes within Brazil." Funds have been released to conduct postmortem FMD surveillance in all Brazilian slaughter plants registered with the Federal Inspection Service.

Brazilian officials have been frustrated with cattle farmers who refuse to obey government mandates to vaccinate their livestock for FMD and cattle traders who don't demand vacciantion certification at time of purchase. Cattle farmers claim the government isn't paying its fair share to eradicate the disease, and that government mandates to vaccinate only increase their costs for which they see no return.

Prior to this recent FMD outbreak, most animal health observers believed Brazil's sanitary and animal health programs were adequate to isolate the disease and protect importing nations from FMD. In fact, some U.S. meat traders were anticipating USDA would follow suit with global animal health authorities and remove Brazil from the list of FMD countries. Some were positioning themselves to begin importing fresh beef from Brazil possibly as soon as the first part of next year. Speculation is now that the most recent outbreak could delay for another 1-2 years Brazil's entry into full-blown global beef trade.
-- Clint Peck
 

PORKER

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Reuters/ Agence France Presse

ELDORADO, Brazil - Manoel Simoes Junior, who is watching health officials in Brazil slaughter his herd of 3,600 head of cattle after they tested positive for foot-and-mouth, was cited as telling Reuters by phone he wants explanations and that he is not to blame for the outbreak on his property, on which two local police officers shot dead the first lot of 300 of his herd earlier this week, adding, "What the press needs to ask is how this happened. I have employees trained by government health officials, who have administered vaccination regularly (for foot-and-mouth). And I never brought cattle in from outside."

The stories explain that Simoes runs the Jangada ranch for his father-in-law Renato Turquino in Eldorado, Mato Grosso do Sul, Brazil's No.1 cattle ranching state. Jangada was one of the ranches under quarantine after the disease showed up in the region on October 10.

Simoes was further quoted as saying, "There is still no sign from the government about compensation and nobody has yet explained to me how the disease appeared. It is savage what is being done to us."

The stories add that at least 5,100 head of cattle in the region will be slaughtered in and around the region of Eldorado, if new cases of the virus don't surface anew outside the quarantine area.

One of the main theories of health officials is that vaccines used in the area were poorly handled or poorly administered to the herds, thus making them less effective or useless against the disease.

Ranchers have also said that the disease originated from across the nearby border in Paraguay, as all of Brazil's herd in the state is under vaccination.

The Paraguayan government denies the accusations.

Officials in Brazil were cited as confirming on Friday two new outbreaks of foot-and-mouth in the state of Parana after four cases were reported in the country earlier this month. The new cases were detected in the towns of Toledo in the west of Parana state and in Londrina in the north, the state government’s press office told AFP. Parana borders Paraguay and Argentina to the south.
 

PORKER

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Does THIS SOUND RIGHT ?????

Importation of meat that originates in an FMD region and is cured or cooked in another region can be shipped to the US.



October 25, 2005

This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules.

[[Page 61578]]

9 CFR Part 94

[Docket No. 02-083-1]

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Proposed rule.

SUMMARY: We are proposing to amend the animal and animal product import regulations by adding provisions for the importation of cured or cooked shelf-stable meat derived from ruminants or swine that originate in a region where rinderpest or foot-and-mouth disease exists if the meat is cured or cooked in another region. This action would provide for the importation of these commodities while continuing to protect the U.S. ruminant and swine populations against incursions of rinderpest and foot-and-mouth disease.

DATES: We will consider all comments that we receive on or before December 27, 2005.

ADDRESSES: You may submit comments by either of the following methods:

Federal eRulemaking Portal: Go to http://www.regulations.gov

and, in the ``Search for Open Regulations'' box,

select ``Animal and Plant Health Inspection Service'' from the agency drop-down menu, then click on ``Submit.'' In the Docket ID column,

select APHIS-2005-0087 to submit or view public comments and to view

supporting and related materials available electronically. After the close of the comment period, the docket can be viewed using the ``Advanced Search'' function in Regulations.gov.Postal Mail/Commercial Delivery: Please send four copies of your comment (an original and three copies) to Docket No. 02-083-1, Regulatory Analysis and Development, PPD, APHIS, Station 3C71, 4700 River Road Unit 118, Riverdale, MD 20737-1238. Please state that your comment refers to Docket No. 02-083-1.

Reading Room: You may read any comments that we receive on this docket in our reading room. The reading room is located in room 1141 of the USDA South Building, 14th Street and Independence Avenue SW., Washington, DC. Normal reading room hours are 8 a.m. to 4:30 p.m., Monday through Friday, except holidays. To be sure someone is there to help you, please call (202) 690-2817 before coming. Other Information: Additional information about APHIS and its programs is available on the Internet at http://www.aphis.usda.gov.

FOR FURTHER INFORMATION CONTACT: Dr. Masoud Malik, Senior Staff Veterinarian, Technical Trade Services, National Center for Import and Export, VS, APHIS, 4700 River Road Unit 40, Riverdale, MD 20737-1231;

(301) 734-3277.
 

Econ101

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NCBA, Where is your voice in the USDA when it is needed--or do you only answer to the packers? Any outbreak due to non-action on this issue should come out of your government checks and any retirement plans first. We can not afford for the USDA to remaing incompetent.
 

PORKER

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NCBA, Where is your voice in the USDA when it is needed.

Their big voice of past years now has been cut in half and just got worst with the statement ;(We are proposing to amend the animal and animal product import regulations by adding provisions for the importation of cured or cooked shelf-stable meat derived from ruminants or swine that originate in a region where rinderpest or foot-and-mouth disease exists if the meat is cured or cooked in another region.) from APHIS an that NCBA has no comment on which could ruin the US cattle industry.
 

PORKER

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Foot and Mouth Disease Hits Brazil with Close to US$ 2 Billion in Losses
Written by Newsroom
Sunday, 30 October 2005
Foot and mouth export losses are estimated to reach US$ 1.7 billion given the ban on Brazilian beef and pork in at least 50 countries, revealed Brazilian Minister of Agriculture Roberto Rodrigues before Congress.

"This year, we will be loosing somewhere around US$ 500 million", said Rodrigues addressing the Brazilian Senate Agriculture Committee where he was summoned to report on the FAM situation following an outbreak that has expanded to at least five southern states.

Rodrigues said those losses were expected in the coming six months, which is the extension of time the ban on Brazilian beef and pork would apply in most countries.

However the total contraction in overseas sales of beef would ultimately total US$ 1.1 billion and port, US$ 600 million.

Brazil was the world's leading beef exporter in 2004, with US$ 2.5 billion and the third exporter of pork.

The Minister also announced the federal government was granting US$ 15 million support to the two states which have suffered most the impact of FAM, Mato Grosso do Sul, where the outbreak was first reported, and Paraná.

So far eleven outbreaks have been confirmed in Mato Grosso do Sul and another four in Paraná, which borders with Paraguay and Argentina.

Argentina has declared a state of sanitary alert in the northern provinces bordering with Brazil to prevent FAM from expanding south.

Further to the south, and to avoid surprises, Uruguay which borders with the state of Rio Grande do Sul, has imposed strict controls along the border, and Army armed patrols on horse back support the Customs and Animal Health teams.
 

Econ101

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PORKER said:
Todays COST hit 3.2 Billion US. loss.

Who says the world markets are the way to bring the U.S. agricultural markets out of low prices after reading this article?
 

pointrider

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Econ101 said:
PORKER said:
Todays COST hit 3.2 Billion US. loss.

Who says the world markets are the way to bring the U.S. agricultural markets out of low prices after reading this article?

Econ 101, you surely know the real answer to low prices. It is called the cattle cycle, and it happens because Bottom Third producers (those who lose money 90% of the time) and a few others who just don't like breaking even get out of the business which cuts down on the number of exposed cows thereby reducing the calf crop and the supply of feeders. As prices rise as a result, primarily Top Third producers expand to complete the cycle.

In the past, U.S. producers only had to be concerned primarily with the cycle in the U.S. Today Canada and Mexico are also in the equation, and the odds are that producers and packers in other countries will also become players with enough influence to impact the U.S. cycle.

I believe, in the long run, the cycle will become more of a world cycle and will work basically the same way because that's the way most of the ranchers today will want it. Free enterprise, capitalism, independence and all the rest as opposed to a world government run industry.

So, the question is, what is the outlook for prices in the U.S. 10 years from now compared to what we have today? What will be the "game plan" in this country if the U.S. producers find themselves fighting to be in the Top Third when there are suddenly twice as many in the game and half of them are in other countries? Should a law be passed that would require Tyson, as long as they stay a U.S. corporation, buy only cattle that were produced in the U.S.? If not, what then?
 

Econ101

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pointrider said:
Econ101 said:
PORKER said:
Todays COST hit 3.2 Billion US. loss.

Who says the world markets are the way to bring the U.S. agricultural markets out of low prices after reading this article?

Econ 101, you surely know the real answer to low prices. It is called the cattle cycle, and it happens because Bottom Third producers (those who lose money 90% of the time) and a few others who just don't like breaking even get out of the business which cuts down on the number of exposed cows thereby reducing the calf crop and the supply of feeders. As prices rise as a result, primarily Top Third producers expand to complete the cycle.

In the past, U.S. producers only had to be concerned primarily with the cycle in the U.S. Today Canada and Mexico are also in the equation, and the odds are that producers and packers in other countries will also become players with enough influence to impact the U.S. cycle.

I believe, in the long run, the cycle will become more of a world cycle and will work basically the same way because that's the way most of the ranchers today will want it. Free enterprise, capitalism, independence and all the rest as opposed to a world government run industry.

So, the question is, what is the outlook for prices in the U.S. 10 years from now compared to what we have today? What will be the "game plan" in this country if the U.S. producers find themselves fighting to be in the Top Third when there are suddenly twice as many in the game and half of them are in other countries? Should a law be passed that would require Tyson, as long as they stay a U.S. corporation, buy only cattle that were produced in the U.S.? If not, what then?

If companies like Tyson's is able to pit one country against another when it comes to cattle, there just will not be any real profitability in cattle. When prices are high they will go on the world market and buy those goods cheaper. Pickett argued that Tyson suppressed cattle prices with their market power. This led to an exageration of the cattle cycle. Now prices are high and Tyson wants to import more cattle from other countries. My talk with Chuck Lambert on price manipulation ended with the assumption that if it was a slide down the supply curve, the supply would react and then we would eventually get higher prices. Meanwhile cattle producers would benefit from the higher prices the manipulation caused. This argument did not include the fact that foreign sources of beef could be used and hence reduce the producer's profitabilty. It also did not account for the substitutes. These policies reduce the profitability of the cattle business in the long run and give that reduced profitability of the producers to Tyson through their increased profits on imported beef.

To answer your question, I do think that Tyson (not just Tyson) should not only be limited to buying cattle in the U.S., but should also be limited in one of the animal proteins. They have too many economic games that can be played when they own the substitutes. I believe that a target of only 20% of total production should be allowed to any one company so that competition remains in the market. I also believe that a country should set goals of having only a certain percent of their food come in from other countries. This would help make sure that food production in the country was stable and diverse. World markets (like in sugar) allow a country to subsidize a commodity until the infrastructure in competing countries for those products is harmed. Then extra "rents" can be extracted from the market.

The over riding goal of "efficiency" will ironically lead to inefficiency in the economy. Low cost producers may not really be low cost producers when all of the costs are counted. They just might be throwing some of their costs to someone else. Competition allows those someone elses to use someone else. When markets are too concentrated this can not happen. Market participants collude oftentimes when it is in their best interest. This collusion is only good for thier sector of the industy.

It is hard to answer your question simply because it leads to many, many details. But I tried.
 

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Thursday, November 3, 2005 Posted: 1821 GMT (0221 HKT)

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Manage Alerts | What Is This? SAO PAULO, Brazil (AP) -- An additional 15,000 heads of cattle will have to be slaughtered to contain an outbreak of foot-and-mouth disease that has led a host of nations to ban Brazilian beef imports, health authorities said Thursday.

"Our calculations show that at least 17,000 heads of cattle will have to be sacrificed before we can say we are free of the disease," said Tatiana Danetti, a spokeswoman for the animal health department of the state of Mato Grosso do Sul, where the outbreak of the highly contagious disease was first detected in October.

So far, 2,028 animals have been slaughtered, Danetti said.

On October 10, the Brazilian government confirmed an outbreak of the disease among 140 animals on a farm near Eldorado, a small rural town some 500 miles (800 kilometers) west of Sao Paulo.

Authorities quickly quarantined Eldorado and four neighboring municipalities in a 16-mile (25-kilometer) radius that encompasses 21 ranches and small homesteads where cattle have tested positive for the disease. Barriers are still in place to prevent livestock and animal products from leaving the area.

All the ranches where the disease has so far been detected are in Mato Grosso do Sul, which has a herd of 25 million heads of cattle, accounting for nearly half of Brazil's beef exports.

Authorities are awaiting conclusion of tests that have been conducted on some properties in the neighboring state of Parana.

Foot-and-mouth disease, which also affects sheep, pigs and goats, is a highly contagious viral illness that can spread through minimal contact with infected animals, farm equipment or meat. The disease can be fatal in animals but does not harm humans.

This week, 16 of Brazil's 27 states began a second round of vaccinations that by the end of the month is expected to immunize 161 million of Brazil's total herd of 198 million heads of cattle, according the Agriculture Ministry's National Foot-and-Mouth Eradication Program.

The first vaccination round in the 16 states, including Mato Grosso do Sul, was concluded in May, said Agnes Melo, a ministry spokeswoman.

The vaccination has an efficiency ratio of 98 percent against the foot-and-mouth virus strain found in cattle in Mato Gross do Sul, the Agriculture Ministry said in a recent statement.

"Vaccinate the entire herd, from small ranches to large," Agriculture Minister Roberto Rodrigues said in the statement. "This is imperative for national security."

Brazil's beef exports were expected to total an estimated $3 billion by the end of the year. But with the partial or total bans on the entry of Brazilian meat imposed by 49 countries, the year-end target has been downsized to $2.8 billion, said Miguel Bueno, spokesman for the Brazilian Meat Exporters Association.
 

pointrider

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Thank you for your comments, Econ 101. You have presented some ideas that probably don't have a chance of happening, but, like you said, at least you tried to explain things as you see them. We need more of that from more people. I am going to send you a private message ASAP, so be checking. Probably tomorrow.
 

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