SIAL REPORT: Brazil to Weather Economic Downturn

FRANCE - The Brazilian beef industry is expected to weather the present global economic crisis following government action to help farmers with credit.
calendar icon 21 October 2008
clock icon 2 minute read

Luiz Carlos de Oliveira, the executive director of the Brazilian beef organisation ABIEC said that livestock and arable farmers were initially feeling the effects of the world economic downturn because of lack of credit.

However, speaking at the SIAL food exhibition in Paris, he said that the government had introduced a policy that delayed borrowing payments and this had eased the ability of farmers to get credit.

Mr Carlos de Oliveira said that the Brazilian beef industry was now starting to see a change in fortunes following problems caused by a reduction in herd numbers and a price squeeze.

He said that a reduction in the value of the Real had helped prices and now the industry is starting to boost cattle numbers.

He said that the industry is looking for an increase in productivity not an expansion of the area of the country devoted to raising cattle.

"We are working to increase production and looking to have livestock and arable production in the same area," he said.

He said there was enough pasture land for the cattle as at present the Brazilian herd has a stocking density of one animal per hectare.

He added that the country is looking to settle the dispute with the USA to open the market for Brazilian beef and he indicated that a compromise was expected where the Brazilians would recognise the integrity of US beef, following the BSE scare and the US would end its sanitary and phytosanitary sanctions.

Mr Carlos de Oliveira also said that at present Russian inspectors are in Brazil auditing 55 plants dedicated to export to Russia.

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