The government of Argentina has announced this Wednesday (09.20.2017) that imports of Brazilian beef are allowed. For five years, Argentina did not import beef from Brazil after a mad-cow disease outbreak registered in Londrina, state of Paraná.
Category Archives: Livestock
The exports of the grain and cereals complex reached a value of US$ 12.4 billion in Argentina in the first half of the year, according to official data. The volume exported in the period reached 22 million metric tons, which a fall of 12 percent compared to 2016 when 25.3 million metric tons were shipped.
In the meantime, beef exports have risen 6.8 percent to US$ 1.3 billion. In terms of volume, there was a hike of 24 percent to 168,000 tons. The number is expected to grow a lot more in the coming months because has open its market of frozen beef for Argentina.
Argentina’s agricultural exports moved US$ 10.9 billion in the first six months of the year, according to data from the Center of Cereal Exporters. During last week alone, the sector moved US$ 308.7 million. Compared what was exported in 2016, it represents 45.6 percent of the sum of the whole year.
The Brazilian version of the farm bill, called locally as Plano Safra (Crop Plan), was announced today (07.06) and the total amount available was R$ 188.3 billion (almost US$ 58 billion). The amount provided is lower than what was available during the 2016/2017 season if inflation is considered. The investment in the previous crop was R$ 185 billion.
By far, the largest percentage of the plan is put on credit subsidy programs. The total amount used in that is R$ 150 billion. Of this total, R$ 116.26 billion will be used on loans with controlled interested rates and R$ 34 billion with regular interest rates.
“We are here to reaffirm our unequivocal support to Brazilian agriculture. The farm business is synonym of efficency,” said Brazilian president Michel Temer at the lauch of the program.
By Luís Vieira
U.S. President Trump has conditioned the entrance of Argentinian biodiesel and beef into the American market.
In May, the U.S. officially announced that it suspected antidumping of Argentinian biodiesel, and it would suspend those biodiesel imports until it ends an investigation.
Separately, Argentina’s beef had a prior allowance for imports set by the Obama administration, but it is now under revision by Trump’s White House.
The Brazilian Real has dropped almost 40 cents comparing to the U.S. Dollar this Thursday (05.18). The dollar in Brazil is now worth R$ 3.38. The devaluation is after a political that involved a bribe between the country’s largest meat maker and packaging company, JBS, and the president of the nation, Michel Temer. Usually, when the Brazilian currency value drops, grain exports tend to grow.
By Luís Vieira
The Trump administration, since its beginning and prior to the election, has been criticizing trade agreements and what it calls unfair practices, mostly toward the U.S. manufacturing complex and allegedly those coming from Mexico.
Nevertheless, undesired consequences have been seen, and the most affected sector is U.S. farm business.
Mexico, one of the top buyers of U.S. food, has been announcing new sources for supplies of several products from major competitors, attempting to minimize purchases from the U.S., before any type of change in the North American Free Trade Agreeement (NAFTA) is made.
According to an input analyst at Scot consultancy from the state of Sao Paulo, Rafael Ribeiro, the scenario is very positive for cattle ranchers and only would change in an “atypical condition”. Ribeiro says that even with low quotations for the animal protein sector, the market is favorable because of low input prices.
“Only a climate factor with impact on production or yet a dollar very favorable to exports, that are atypical at the current moment, could impact the price of these inputs. Even if that happens, cattle raisers will not wait for the last time to buy,” concludes Ribeiro.
As a result of the Federal Police investigation that discovered a tainting scandal, the meat exports from Brazil dropped from US$ 60.5 million on Monday to US$ 74,000 yesterday. This morning, a new country announced that will block the entrance of Brazilian meat: South Africa.
After a Federal Police investigation that discovered meat tainting by several meat packers in Brazil, Japan, the European Union, Mexico, Egypt, Hong Kong, China and South Korea announced a blockade of any meat imports from the country. Brazil’s Agriculture minister, Blairo Maggi, said today that the country could lose up to 10 percent of the market share. “It could take Brazil up to five years to recoup its market share,” he told a Senate committee.