Brazilian beef exports already down by 30 to 40%
Export losses due to foot and mouth are estimated to reach US$ 500m this year alone, due to the ban by at least 50 countries. And with the disease now in at least five southern states, the loss of overseas sales will total US$ 1.1 billion for beef and US$ 600 million for pork, Minister of Agriculture Roberto Rodriguez told the country’s Congress last week.
But up to US$ 20 or 30 billion in foreign sales could be involved if the ban is fully extended to pork, (Brazil is the world’s third largest exporter), lamb, soybean flour, veterinary medicines and equipment and other commodities that could be considered a means of spreading foot and mouth.
Minister Rodrigues said he hoped states affected by the disease opt for total destruction of herds. This is a prerequisite for the country to resume exports, he said.
If cattle breeders destroy only sick animals, they cannot resume exports until 12 months after the disease is controlled.
He announced compensation for ranchers’s losses.
Authorities said the original outbreak on October 10 in Mato Grosso do Sul reached the state of Parana via a cattle show and from there has spread to Sao Paulo, Santa Catarina and Rio Grande do Sul.
Neighbouring Argentina, fearing spread of foot and mouth and damage to its huge beef export industry, has set up armed border patrol guards instructed to kill all unmarked, uncertified, undocumented cattle.
Brazil’s government has also agreed preventive measures and imposing strict sanitary controls on imports to prevent bird flu triggering another agri-exports disaster. The country is the world’s leading exporter of both beef and poultry meat.
