Rising prices end the threat of massive Brazilian beef imports

RISING prices have ended the threat of Brazil supplying substantial quantities of beef into the EU, for the moment.

Since the start of 2010, Brazilian R3 steer prices have risen almost to a par with the price in Ireland. In 2007, Brazil was established as the main low cost supplier of beef to international markets. But a stronger currency and a 50% domestic annual cattle price increase have left the south American exporter unable to undermine the EU market with low priced beef — even in the event of an EU free trade deal with south America.

The rate of approvals for Brazilian farms to export to the EU has slowed in 2010, possibly because current trading conditions leave the Brazilian industry less interested in the European market.