Brazil has been the leading beneficiary of the BSE-induced absence of Canada and the United States from most of the world’s beef markets.
While Australia has captured many headlines because of its increased activity in Japan’s beef market, Brazil’s beef industry is the real global star.
Brazil became the world’s leading beef exporter this year, surpassing Australia, whose ability to capitalize on Canadian and American BSE problems was limited by the previous two years of drought.
But Brazil’s beef export surge is not simply dependant on other countries’ problems. According to U.S. Department of Agriculture figures, Brazil has steadily increased from a 5.6 percent share of world beef exports in 1995, when total world beef exports were 5.11 million tonnes, to 8.4 percent in 2000 (5.88 million world total) to an expected 24.6 percent share in 2005 (6.57 million world total).
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Its exports are increasing because its beef herd is getting larger and more productive. Brazil’s exports have also enjoyed favourable currency exchange rates and the country aggressively promotes its meat. It is doing exceptionally well in the European Union, Egypt and Russia.
It is impressive that all this growth is happening while Brazil struggles to eradicate stubborn pockets of foot-and-mouth disease, a problem that keeps it out of some markets.
But Brazil is not the only country edging up in the world beef exporter rankings. Its South American neighbours are also flexing their muscles. Argentina, recovering from foot-and-mouth problems, has seen beef exports climb to 540,000 tonnes (8.7 percent share) in 2004 from 357,000 tonnes (six percent) in 2000 and Uruguay shipped 400,000 tonnes (6.5 percent) this year, up from 236,000 (four percent) in 2000.
New Zealand has also expanded, to 600,000 tonnes (9.9 percent) in 2004 from 505,000 tonnes (8.6 percent) in 2000.
But Canada is no slacker either.
Before its BSE problems, exports were growing quickly. Canada had climbed from 4.2 percent of world exports in 1995 to 8.9 percent in 2000. In 2002, the last full year before BSE, it peaked at 9.6 percent.
And now, despite BSE export restrictions, it is doing surprisingly well. Canfax reported that, based on current trends, total beef exports this year should climb by 30 percent over 2003, the year that reflected the months Canada was totally out of the U.S. market.
This year’s total should be about 513,000 tonnes on a carcass weight basis. That is down about 15 percent from 2002, but about equal to 2000, Canfax notes. In 2004, despite its BSE problems, Canada had an 8.7 percent share of world exports.
But not every beef exporter is increasing shipments.
The European Union has seen its share of world beef exports decline due to its own BSE problems.
In 1995, its share was 18.1 percent. That had declined to 11 percent in 2000 and is expected to be 5.6 percent in 2005.
The U.S. share grew from 16 percent in 1995 to 19 percent in 2000, but now that it is out of Japan and the rest of Asia because of BSE, its share is 4.1 percent.
There are a lot of numbers here, but they serve to emphasize that while the world beef export market is growing, it is also becoming more crowded.
Canada’s beef industry has redoubled its commitment to diversify its beef marketing. To succeed in an increasingly competitive market, it will need to keep on the cutting edge of quality and food safety.
