EU delegation heads for Brazil

Another review of the EU restrictions on imports of beef from Brazil is being undertaken this week, the outcome of which will be critical for the beef trade in Europe into 2007.

An official delegation from the European Commission is visiting Brazil this week to carry out a review of the Brazilian food safety measures for exports leaving the country. The restrictions on imports from certain states in Brazil has boosted demand and price for EU produced beef throughout the year, with producers fearing a reversal in the trend if increased volumes of low cost Brazilian returns to the market.

The average steer beef at the Sao Paulo Market in Brazil was selling last week at the equivalent of 148 cents/kg (53p/lb) dw.

Meanwhile the ban on imports of beef from the state of Sao Paulo, the largest beef producing state in Brazil, and the state of Goias has been lifted by Russia. The ban was imposed by Russia following the outbreaks of Foot and Mouth disease in the neighbouring states of Mato Grosso do Sul and Parana.

Last December Russia imposed a ban on beef from eight Brazilian states. Last April the restriction on beef from the states of Rio Grande do Sul was lifted and in August Mato Grosso was cleared for exports to Russia.

The ban remains in place for beef coming from the four other states.

A recent USDA report confirmed that Paraguay has benefited from the restriction on Brazilian sales to Russia, importing more than 60% of the total beef production in Paraguay.

Most of the beef is in frozen form, comprising mainly of frozen boneless beef, according to the latest information from the US Department of Agriculture.