Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

UPDATE 3-Brazil farm minister heads to U.S. over fresh beef ban

Published 2017-06-23, 02:56 p/m
Updated 2017-06-23, 03:00 p/m
© Reuters.  UPDATE 3-Brazil farm minister heads to U.S. over fresh beef ban

(Adds Canada rejecting six Brazilian shipments in paragraph 12)

By Roberto Samora and Bruno Federowski

SAO PAULO, June 23 (Reuters) - Brazil's agriculture minister prepared to travel to the United States on Friday to fight a ban on imports of fresh Brazilian beef, which hit shares of local meatpackers and revived concerns about the image of the world's largest beef exporter.

"We will fight for this market!" said the minister, billionaire soy baron Blairo Maggi, in a message posted to social networks late on Thursday. He said corrective steps were already being taken to address the U.S. safety concerns.

The U.S. Department of Agriculture's ban dealt a setback to Brazil's recently opened fresh beef trade with the United States and was another black eye after recent industry scandals. the ban did not affect the bulk of Brazilian beef imports, which are processed.

The USDA cleared U.S. consumption of fresh beef from Brazil last year and it still represents just 1 percent of the industry's exports, according to Antonio Camardelli, head of the Brazilian meat exporters association Abiec. said there were problems with hidden abscesses in exported Brazilian meat caused by allergic reactions in cattle to a vaccine against foot-and-mouth disease. Meatpackers are now chopping beef into smaller cuts to be sure they catch such irregularities, he added.

But Camardelli said the setback hurt hopes of the USDA's earlier approval opening the door to bigger fresh beef importers such as Japan and South Korea.

"If you look at the financial aspect, it's important for the country, but the bigger damage is to our image," he said. "We worked a long time to open the U.S. market, because it's a passport to other markets."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Camardelli said about 120 containers containing about 3,000 tonnes of Brazilian meat headed to the U.S. market are currently at sea.

Brazilian Finance Minister Henrique Meirelles said on Friday he expects the United States to lift the ban soon.

Since March, the USDA has rejected 11 percent of Brazilian fresh beef products, compared to the rejection rate of 1 percent for shipments from the rest of the world. The shipments, totaling about 1.9 million pounds, raised concerns about public health, animal health and sanitation, the USDA said.

Canada has rejected six shipments of Brazilian beef out of 191 meat shipments since April 10, according to the Canadian Food Inspection Agency. The agency said it recently blocked imports from one JBS SA JBSS3.SA plant in Brazil that did not meet food safety requirements, but is accepting meat from plants that meet its standards. months ago, Brazilian meatpackers were hit with a scandal involving alleged bribery of health officials, which briefly shut Brazil's protein exports out of major global markets from China to Europe. of JBS, the world's largest meatpacker, and local rival Marfrig Global Foods SA MRFG3.SA both fell about 1 percent in early trading in Sao Paulo.

Marfrig said beef exports from Brazil to the U.S. market have contributed less than 1 percent of its revenue this year.

JBS declined to comment on the matter.

Rival Minerva SA BEEF3.SA , whose shares were flat, said it would ship fresh beef to the U.S. market from Uruguay rather than Brazil, adding that the change would not affect its export volumes.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.