Brussels, 29/10/2013 (Agence Europe) - A reduction in EU customs duties will undoubtedly lead to a sharp increase in Brazilian exports of poultry and beef towards the EU, warns a report by the French Institut de l'élevage (ruminants), IFIP (pork meat) and ITAVI (chicken).
In 2011, Brazil became the first, second and fourth biggest exporter of poultry, beef meat and pork in the world. It provided 70% and 40% of European poultry and beef meat imports respectively, underlines this study, “Mercosur's Agricultural Competitiveness: Brazilian Animal Rearing Sectors”, funded by the French Department of Agriculture, published on 24 October and entitled,.
Brazilian competitiveness is based on three factors: abundance and lower production costs (labour and land taxes in inland regions) and inputs (animal feed), a strong industry receiving large scale state subsidies, and pick and choose health regulations. Although certain competitive disparities with the EU are eroding (wages and land prices, in particular), they are unlike to close in the short or medium term. Meat production prospects in Brazil remain on the up until at least 2017.
Nonetheless, the domestic market still provides strong development potential, which could slow down the rise in production available for export. Although Brazilian pork meat exports to the EU remain banned for health reasons, beef and poultry exports are directly affected by developments in European quotas subject to reduced duty and over-quota tariffs. Brazil effectively fully takes up all tariff quotas every year and Europe remains by far, the most profitable market for these two kinds of meat, states the report. The study also warns that “possible expansion of these quotas or worse still, a cut in customs duties as part of a bilateral or multilateral framework, would undoubtedly result in a sharp increase in Brazilian poultry and beef meat exports to the EU”. (LC/transl.fl)