BRAZILIAN beef’s dramas started in March with meat inspection corruption scandals which led to temporary import bans, then the JBS affair arrived which is seeing big sell-offs of assets owned by that company – the world’s largest meat packer.
Next came a suspension of fresh Brazilian beef exports to the United States.
Brazilian beef exports were only down 10 per cent year-on-year in the first five months of 2017.
During a visit to Darwin, leading South American economist Adolfo Fontes, Rabobank’s senior research analyst based in São Paulo, pointed out Brazil’s beef industry bounced back quickly on the regulatory front following the first drama.
It could be these type of events, while garnering big media attention, actually don’t affect consumers or governments that need to meet growing demand for beef for extended periods.
Still, Australia is keen to see if the instability in Brazil continues and whether it eventually has a bearing on Brazilian cattle prices, and subsequently, production.