Less red meat produced and available for export
Lower volumes from meat processing plants are impacting export returns for New Zealand red meat.
Meat Industry Association chief executive Tim Ritchie says NZ doesn’t compete directly with Brazilian beef in most markets, apart from China.
“For example, Brazil does not have access to some of NZ’s major beef markets including Taiwan, Korea and Japan,” he told Rural News.
Brazilian beef exporters are breathing easier after China and Egypt last week lifted a ban on their products.
China and other importers of Brazilian beef issued bans after Brazilian federal police unveiled on March 17 an investigation into alleged payments to government health officials by meat processing companies to forego inspections and ignore abuses.
Ritchie says in the short term the ban may not have made much impact on global beef markets.
“Media have reported that China and Egypt – two major importers of Brazilian beef – have already lifted bans on Brazilian imports.
However, Brazilian beef is likely to face increased inspections in many countries, and some international customers may be less willing to purchase Brazilian beef.”
Brazil is also a small exporter to the lucrative US market. Although the US opened its market to beef imports from all parts of Brazil in August last year, exports to the US are still relatively small (847 tonnes last year).
Ritchie says Brazil does not have a country-specific quota like NZ and Australia, so it will compete for space in the 64,805 tonne “others” quota.
Meat is Brazil’s third-largest export, after soy and iron ore.
Ritchie says the controversy underlines the importance of having a strong and credible regulatory system, which New Zealand has.
