January 13, 2014
Brazilto increase internationalmeat exports in 2014
Brazil''sMinistry of Agriculture, Livestock and Supply (MAPA) is negotiating the opening of new markets forthe country''smeat exports, including the US, China, Saudi Arabia, South Korea, South Africa and Mexico.
At present, Brazil has 24 plants approved for export to China and aims to expand and diversify export companies. In particular, there are hopes to reopen the Chinese market to Brazilian beef in 2014, after the market was closed due to Bovine Spongiform Encephalopathy (BSE) in 2012. Currently, eight units are certified to export and the repeal of the ban is expected to add nine more stores. Five pork plants have also been approved.
Saudi Arabia, traditionally an importer, is an important market, which also suspended purchases after the BSE episode. A Saudi mission in February is expected to lift the embargo andpermit establishments.
South Korea, the fifth largest importer of pork, is an attractive market and is considered strategic for the diversification of Brazilian exports. Domestic pork shipments can also be resumed to South Africa this year, after they were suspended in 2005.
In South America, Mexico is a potential destination for Brazilian poultry meat in 2014. In 2012, the country approved five plantswhich could access the market through a tariff quota, which the Brazilian government hopes to increase to 40 plants in 2014.
Talks with the US has been ongoing since 1999 and conditional beef imports has been approved.
Meanwhile, there has been speculation that Brazil''s JBS, the world''s largest meat company, could belooking toNew Zealand meat companies after successfully expanding in Australia and the US, according to Federated Farmers.
Currently, JBS is the third-largest lamb processor globally, but is the leader in most other meat categories. It has become a major global processor of beef, pork, poultry and lamb through acquisitions and has a strategy of diversifying, according to the Meat Industry Options Paper released by Federated Farmers.
Until the 1970s, British companies predominantly owned the sheep meat production industry in New Zealand. Today, ANZCO, one of the current big four players, is 73% owned by Japanese parties. Any overseas buyer would have to meet the requirements of New Zealand''s Overseas Investment Act.