Brazilian exporters will not have losses with mad cow

Published 2023년 2월 23일

Tridge summary

The Brazilian Foreign Trade Association (AEB) does not anticipate significant losses for Brazilian beef exporters due to the suspension of beef exports to China following a mad cow disease case, viewing it as a delay rather than a disaster. The isolated incident is expected to be contained, and the transparency around the issue and temporary export halt could expedite its resolution, potentially leading to the resumption of exports in about 30 days. As the largest beef exporter, supplying 22% of the global market, Brazil is optimistic about the situation returning to normal in April. Additionally, the decline in beef prices, both internationally and domestically, is noted, with a 7.5% reduction in January and a 10.8% increase in shipped volume despite the price drop.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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 losses to Brazilian exporters, only a postponement of sales. As it is an isolated case, the expectation is that there is no contamination of the herd; and the fact that Brazil made the problem public and paralyzed shipments also had a positive impact on the resolution and tended to accelerate the resumption of exports, which revolve around US＄ 500 million per month. “The impact tends to be much smaller than in 2021, the last mad cow record in the country. The protocol was complied with, everything is being done with accuracy and transparency. Furthermore, there is no meat left on the market, no country will be able to supply China's demand in our place. Therefore, we believe that in approximately 30 days the situation will be normalized and in April the beef trade will return to normal levels”, says José ...

Source: Opresenterural