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Brazil Back in the Chilean Market

27 April 2009

BRAZIL - Seventeen Brazilian beef plants are now eligible to export to Chile, reversing the foot and mouth disease ban placed on Brazilian beef in late 2005. Access for 16 of the plants was granted last week by the Chilean Agricultural and Livestock Service (SAG) (the other plant, from the state of Rio Grande do Sul, regained entry in 2006).

The Brazilian Beef Exporters Association (ABIEC) expects all 18 plants inspected by SAG in December 2008 will be granted access in the short term. ABIEC believes that Chile has the potential to import 100,000 tonnes cwt annually from Brazil. SAG is expected to soon send inspection missions to other states within Brazil (Valor Econômico).

During the first half of 2005, before the FMD ban, Brazilian beef had a 61 per cent market share of the Chilean market, when 36 plants were certified. After a period of restricted supply from Argentina, Brazil and higher prices from Uruguay, Paraguay and Australia became larger suppliers to Chile (Chile imported 9,699 tonnes from Australia in 2008).

ABIEC is optimistic Brazil will soon recover its position as the main supplier to Chile, as other traditional suppliers such as Argentina, Uruguay and Paraguay are currently focused in the EU, Russia and the US.



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