WMC REPORT - Disease Control Essential to Maintain Markets

SOUTH AFRICA - Countries who want to maintain their position in the world beef market will have to control disease outbreaks such as foot and mouth disease and BSE.
calendar icon 9 September 2008
clock icon 2 minute read

Richard Brown from the market analysts GIRA told the beef committee of the International Meat Secretariat before the World Meat Congress in Cape Town, South Africa that with the global meat industry changing countries such as Brazil had a big future provided they met the demands of the market.

He said that the prospects for the industry are bright as consumption in the developing markets of China and Russia in particular will be growing.

However, for some producing countries, the rise in cereal costs is going to be a challenge for grain-fed beef suppliers.

However, he said that the South American countries would have a competitive advantage for meat and beef production provided they do what they have to do to gain access to those markets.

He said that 50 per cent of Brazil's expected production growth could go onto the export market.

He showed that the EU was a saturated market but warned of the threat that the new disease of Bluetongue could hold for European producers.

He added that while economic and population growth in countries such as China hold out good prospects for beef consumption, other meats, such as pig and poultry meat, could be favoured because they are less expensive to produce.

He added that the industry is also seeing dynamic consolidation with companies in Brazil in particular - including Sadia, Perdigao and JBS and Marfrig - changing the power base in the industry.

And this growth in company power is being matched in other countries with companies such as VION and Danish Crown in Europe and Smithfield and Tyson in the USA.

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