Russia lifts ban on Brazil beef
This development marks the first easing of the ban on exports from Brazil following the outbreak of foot-and-mouth disease there during the final quarter of 2005, and will be watched closely by Irish and EU exporters because of the reliance on Russia as a non EU outlet for EU producers.
The resumption of imports by Russia of beef and pork from the Brazilian states of Rio Grande do Sul and Santa Catarina is to be effected immediately according to the Brazilian exporters association.
All beef and pork imports from Brazil were banned by Russia in the aftermath of foot-and-mouth outbreaks in both regions.
The resumption of trading with Santa Catarina is significant in volume terms, particularly for pork, as it provided 70% of all Brazilian pork to Russia during 2005.
A return of product from Brazil to Russia will impact on demand for supplies from Europe, which relied on the Russian market for 40% of total EU to non-EU exports of beef, amounting to an outlet for more than 110,000 tonnes annually.
Ireland is the second largest EU exporter of beef to non EU markets. Last year Ireland exported 37,000 tonnes of beef to international markets with 70% accounted for by sales to Russia.
Beef production in Australia is increasing following a marginal decline last year. Production for the second half of 2006 is projected to be up by 7%.
Beef production in Germany is also increasing with the supply of steers and heifers to the factories running at 14% more than last year.
