Brazil: The magnitude of the impacts of mad cow will be determined by the duration of the embargo, uncertain and depends on the Chinese

Published 2023년 2월 24일

Tridge summary

A recent case of mad cow disease on a Marabá property has led to the suspension of beef exports to China, in accordance with a 2015 bilateral agreement. The disease, identified in a nine-year-old cow that grazed on grass, is believed to be atypical, posing less risk than the classic type. This incident is expected to impact Brazil's beef market, with China accounting for approximately 60% of fresh beef exports. The article discusses the potential repercussions on meatpacking plants, particularly those with a strong focus on the Chinese market, and highlights the need for strategic planning among these entities. It also mentions the broader context of global beef market dynamics, including an anticipated record in Chinese beef imports and a predicted decline in U.S. production, and offers recommendations for different stakeholders to mitigate the effects on liquidity, pricing, and animal marketing.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

With the confirmation by the Agricultural Defense Agency of Pará (Adepará) of a case of mad cow disease on a property in Marabá, the decision of the Ministry of Agriculture on Wednesday (Feb/22) was to suspend beef exports to China from 23/Feb. A bilateral agreement signed between Brazil and China in 2015 determines the need for a “self-embargo” in case of occurrence of this nature. The country also notified the case to the International Organization for Animal Health (OIE). It is important to remember that Brazil has already had occurrences of atypical mad cow on other occasions, the last two in 2019 and 2021. Atypical mad cow is a brain degenerative process that occurs spontaneously in old animals, which is much less worrying than the classic type, which Brazil never had and which is related to the ingestion of contaminated meat and bone meal. Consumption of meat and animal derivatives contaminated in the classic way can lead to the development of Creutzfeldt-Jakob disease ...

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