September 30, 2004

A Long Way to Stardom

Brazil believes it is poised to become one of the world’s leading beef exporters, though an Alabama Cooperative Extension System livestock economist says Brazil has a miles to go before it can rest on its laurels.

By 2005, Brazil hopes to begin exporting fresh grass-fed beef into the United States while making significant headway breaching Asian trade barriers, says Antenor Nogueira, president of the National Confederation of Agriculture’s Permanent National Forum on Beef Cattle, quoted recently in Brazzil Magazine.

Several factors weigh heavily in Brazil’s favor, Nogueira says, most notably climate. With “well-defined periods of rain and drought,” Brazilian cattle are less susceptible to “various types of diseases, infections and other types of epidemics,” he says.

Dr. Walt Prevatt, an Extension economist and professor of agricultural economics, has little reason to disagree. Brazil has the potential to become a major beef exporter, he believes, though serious challenges remain.

“Brazil still faces serious limitations,” Prevatt says. “Yes, they have a tremendous cow herd, but the challenge remains of gearing up to feed the right kind of cattle in feedlots and being able to turn out a consistent, higher quality beef product.”

Nogueira believes Brazil’s cattle industry is especially primed to capitalize on the growing world consumer interest in grass-fed beef.

“We have a natural meat that is practically organic,” he argues. “A meat produced on pastures without antibiotics, hormones and with greater nutritional safety. And this is what the world consumer desires.”

Prevatt believes he’s right: Brazil could enjoy a great future as a world exporter of grass-fed products, though producers face serious obstacles.

“Brazil has considerable potential, but this isn’t going to happen tomorrow,” he says. “It will have to evolve over time.”

Food safety issues remain a major sticking point, he says. Consumer preferences also will have to change.

Brazil isn’t the only South American producer trying to break into American markets.

“Argentina already ships a good bit of grass-fed beef to the New York market, and upscale restaurants already are advertising Argentina-grown beef,” Prevatt says.

Even so, grass-fed beef is a niche market --- one that still commands only a small segment of the population.

“Unless more consumers vote more aggressively with their food dollars for grassfed beef, Brazil will remain little more than an aspiring beef superpower,” Prevatt says.

[Source: Dr. Walt Prevatt, Alabama Cooperative Extension System Economist and Auburn University Professor of Agricultural Economics, (334) 844-5608.]

Posted by Jim Langcuster at September 30, 2004 04:39 PM | TrackBack
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