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Randall Parker Food Group

BSE Won’t Stop US Beef Export Growth

By Elizabeth Campbell – Apr 26, 2012

The first time mad cow disease appeared in the U.S., beef exports plunged 82 percent. More than eight years later, the discovery of an infected dairy cow in California may do little to prevent shipments from surging to a record for a second straight year.

U.S. beef sales to buyers including Mexico, China and Japan will jump 6 percent to 1.34 million metric tons in 2012, exceeding last year’s record, which the government valued at $4.7 billion, said Global AgriTrends, a Denver-based researcher that advises meat companies, investment banks and hedge funds. The company affirmed its forecast after the U.S. reported its fourth case of mad cow since 2003 and first since 2006.

Detection of the tainted carcass before it entered the human food chain should bolster confidence that U.S. meat is safe, the United Nations’ Food and Agriculture Organization said yesterday, as cattle prices rebounded in Chicago. Canada, Mexico, Japan and South Korea, the four biggest buyers of U.S. beef, said they won’t halt purchases, bolstering prospects for agricultural exports that are a foundation of President Barack Obama’s goal of doubling U.S. sales overseas by 2015.

“The world market has shown that it can absorb any new mad cow information without causing a disruption in trade,” said Chris Hitch, the president of Hitch Enterprises in Guymon, Oklahoma, which owns two feedlots that can hold about 90,000 head of cattle. “International demand for beef is growing, and will continue to grow, with rising incomes in developing nations, especially Asia.”

via Mad Cow Case Won’t Prevent Record Beef Sales: Commodities – Bloomberg.

Mad-Cow Case Confirmed in Central California,

The first U.S. case of mad cow disease in six years has been found in a dairy cow in central California, detected before it could enter the human food chain and pose any threat to consumers, officials said.

The cow was identified as part of routine testing for the brain-wasting disease, known as bovine spongiform encephalopathy, John Clifford, the U.S. Department of Agriculture’s chief veterinarian, told reporters yesterday at a briefing in Washington.

The animal arrived April 18 at a Baker Commodities Inc. facility in Hanford, California, where dead livestock are held before going to a rendering plant, Dennis Luckey, executive vice president of operations at Los Angeles-based Baker, said in a phone interview.

The carcass “was never presented for slaughter for human consumption, so at no time presented a risk to the food supply or human health,” Clifford said in a statement. Mad cow disease cannot be transmitted through milk from dairy animals, he said. “USDA remains confident in the health of the national herd and the safety of beef and dairy products.”

Cattle futures rebounded on the Chicago Mercantile Exchange after tumbling the most in 11 months. Feeder-cattle also rose after falling by the exchange limit. Brazil’s JBS SA (JBSS3), the world’s largest beef producer, fell by as much as 5.2 percent before closing 0.3 percent lower in Sao Paulo. Tyson Foods Inc., the second-biggest U.S. beef processor, pared earlier gains to close 1.5 percent higher in New York.

Random Sampling

This is the fourth BSE case found in the U.S. herd, and the first since March 2006. Clifford said the age and the source of the animal in the latest case were being investigated. Luckey said the animal was at least 30 months old and the disease was discovered as part of random testing conducted to meet USDA quotas. He said it’s possible that a diseased animal could be processed without being tested.

Scientists say the disease is spread through feed that contains brain or spinal-cord tissue from infected animals. People can get it from eating products containing such tissues, such as head cheese. Since 1997, feed made from mammals has been banned from cattle rations, and high-risk materials such as brains have been kept from the human food supply.

via Mad-Cow Case Confirmed in Central California, USDA Says – Bloomberg.

Brazil’s JBS offers to buy local meat packer

(Reuters) – Brazil’s JBS, the world’s largest meat producer, made a bid to buy local meat packer Grupo Independencia in a cash and stock deal for 268 million reais ($142 million), the company said in a market filing on Monday.

The non-binding offer would be 135 million reais in JBS shares valued at 7.91 reais each and another 133 million reais in cash. JBS would not take on any other financial obligations in the takeover.

JBS shares on the BM&FBovespa stock exchange in Sao Paulo fell 5.9 percent to 7.21 reais in afternoon trade, while the main blue-chip index Bovespa was trading down 2 percent.

If Independencia accepts the offer, it would mark JBS’s first large-scale acquisition after a hiatus in recent years. Independencia has four slaughterhouses, most in the center-west, and two distribution centers in Sao Paulo state.

JBS rose from near obscurity out of Brazil’s grain-rich center-west to become the world’s largest meat producer in the past seven years through a series of major acquisitions, including U.S. Pilgrim’s Pride, Swift Foods and Smithfield Be

via Brazil’s JBS offers to buy local meat packer | Reuters.

Brazil could meet half of global meat demand

Brazil will be capable of supplying almost half of the world’s beef within 10 years, according to the Brazilian minister for Agriculture, Livestock and Supply, Jorge Mendes Ribeiro Filho.

Speaking on Brazilian national television yesterday (19 April), Ribeiro Filho said that Brazilian beef production will be able to supply 44.5% of the world market by 2020, with chicken meat expected to reach 48.1% of world exports and pork 14.2%.

Ribeiro Filho discussed a wide range of issues during the interview, including the country’s current dispute with Argentina over pork exports.

Brazilian pork exports to Argentina have dropped by almost 80% as a result of new import restrictions forcing exporters to apply for licences before entering the country. Ribeiro Filho said that he had warned his Argentinean counterpart, Norberto Yauhar, that unless the issue was resolved, Brazil might impose restrictions on Argentinean imports.

“Our meat must be released. If not, we are going to hinder the entry of Argentine products and that it is not good for anyone. Is not what President Dilma Rousseff wants. We want our trade to be revived,” he said.

Other areas covered included the importance of agriculture to the Brazilian economy. Ribeiro Filho pointed out that agriculture accounts for 70.4% of the country’s GDP and the sector employs 30m people. The livestock sector alone accounts for 29.6% of the GDP.

“Agribusiness is, without doubt, the great engine of the economy and it is largely responsible for the Brazilian trade balance surplus. If Brazil did not have the contribution of agribusiness, the country would not have the large accumulation of reserves that it currently has,” he said.

On the topic of foot-and-mouth disease, he said that Brazil had started vaccinating cattle and buffalo  in the states of Bahia and Rondônia this week.

The vaccinations in  Rondônia were given to animals under 24 months as part of a vaccination timetable set out by the Ministry of Agriculture. The vaccinations in Bahia were early due to the drought affecting the region. The second stage of the vaccination will take place in  Rondônia between October 15 and November 15, with all remaining cattle and buffalo vaccinated, Ribeiro Filho added.

via Brazil could meet half of global meat demand.

From: Globalmeatnews.com

South Africa say Brazil are unlikely to approach WTO on poultry ban

South Africa doesn’t believe Brazil will approach the World Trade Organization about the African nation’s decision to impose higher tariffs on some poultry imports, Trade Minister Rob Davies said.

There is “no big crisis” with Brazil on poultry, Davies said today at a trade conference in Sun City, northwest of Johannesburg. “There has been a certain amount of exaggeration about whether this will go to the WTO or not,” Davies said.

Brazil’s poultry association said it would ask the government to approach the WTO about import charges South Africa imposed on the South American nation’s exports, it said in a Feb. 13 statement.

Import charges of 6 percent to 63 percent had been imposed on the poultry for six months, as initial information showed Brazilian producers were dumping products in South Africa and neighboring countries, Francois Dubbelman of Pretoria-based FC Dubbelman and Associates, which represents the South African Poultry Association, said in February.

via S. Africa Says Brazil Unlikely to Approach WTO on Poultry – Bloomberg.