Indonesia, Saudia Arabia and Egypt ban Brazilian beef
At the beginning of the month, Brazil reported two atypical cases of BSE 9mad cow disease)that triggered an immediate response from its main importer, China. There are two weeks now since beef exports to China have been halted and, despite the confidence expressed by Brazilian officials in resuming the trade, the situation is worsening. Three other countries placed a similar ban on Brazilian beef - Indonesia, Saudi Arabia and Egypt - a fact that complicates the situation for the world's largest beef exporter.
China accounts for 48% of Brazilian beef exports, with a monthly volume of 90,000 tonnes reported for July, so weekly losses may go up to almost 30,000 tonnes, according to meat industry analyst Simon Quilty, consulted by ABC Network.
The dispute is focused on the dates of certification and shipment (3 to 9 September) and may prolonge the current situation. Meantime, another 7% in the international market has gone for the Brazilian beef industry, as the three countries mentioned above have banned Brazilian beef imports starting this week. Russia also applied a partial ban for processing units in two Brazilian states Mato Grasso and Minas Gerais.
The situation may lead to an increase in beef prices, as the supply is getting tighter due to herd contraction in Australia and the EU, a ban on exports applied by Argentina and several other factors.
According to theWorld Organisation for Animal Health, (OIE) that no further investigation was needed for the BSE cases reported in Brazil.
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