Brazilian exporters will not have losses with mad cow

Frozen Bone-In Beef

Meat

Brazil

Published Feb 24, 2023

Tridge summary

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.

Original content

“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 Augusto de Castro, executive president of AEB. Brazil is the largest exporter of beef, supplying 22% of the global market. According to AEB, product prices are falling — in January of this year, the quotation was US＄ 4.8 thousand per ton against US＄ 5.2 thousand in the same month last year, a reduction of 7.5% . “It is interesting to see that ...

Source: Opresenterural