Brazil hopeful for US quota

21 August 2003

The Brazilian Agriculture Ministry is optimistic that the US may grant anywhere between a 20,000 to 60,000 tonne country specific quota to Brazil in 2004. Unlike Argentina and Uruguay which both have a 20,000 tonne country specific quota in the US, Brazil has no such quota. If Brazil were granted access to the US, it would currently have to rely on the 'other countries' allocation of 64,805 tonnes. Although Brazil is currently banned from exporting fresh beef to the US due to FMD concerns, the country expects to commence exports to the US in the first half of 2004. This expectation follows the third visit from a technical mission from USDA. Over the 2002/03 fiscal year, Brazilian beef exports (not including processed/cooked beef) rose by 35% to 550,120 tonnes sw, compared with a year earlier. The value of these exports increased by 15% to US$907 million. The EU had the largest demand for Brazilian beef (accounting for over 25% of exports), followed by Chile (16%), Egypt (14%) then Russia (11%). Not surprisingly, Brazil's highest export revenues on a per tonne basis were sourced from EU countries. The highest per tonne value was obtained in Germany (US$3,105/tonne), followed by the Netherlands (US$3,082/tonne), Sweden (US$3,061/tonne) and Spain (US$2,758/tonne). During the 2002/03 financial year, average Brazilian beef exports were valued at US$1,650/tonne. Although 15 of Brazil's 27 states are declared 'FMD-free with vaccination' by the OIE, the entire country is required to have this rating before Brazil can gain entry to other markets including north America. Despite this, Brazil has a strong presence in many export markets, including some markets in which Australia competes such as Hong Kong, the Philippines and other south Asian countries, Russia and Saudi Arabia. In spite of Australia's favourable export position at present, Brazil is expected to become a more dominant competitor to Australian beef in world markets over the medium term. Source: Meat and Livestock Australia

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