A limited supply of slaughter-ready cattle has buoyed the stronger cattle markets through the first quarter of the year. Also, increased exports have been linked with alleviating domestic oversupply issues.

Fed cattle prices increased 5 percent for the quarter, closing at nearly 121 reals ($52 U.S.) the end of March, according to Sao Paulo State University’s cattle price index.

Beef exports have been reported at 36 percent above the prior year with a daily average beef export figure of 5.7 thousand tons.

Meanwhile, the Brazilian fed cattle sector has been investing in yield gains instead of opening new areas of pastures due to the competition with other crops such as soybean, corn and sugar cane (for ethanol production).

According to CEPEA and the Agriculture and Livestock Confederation of Brazil, over the past four years, 80 percent of typical farms surveyed have stocking rates of a little more than one animal per hectare.

Before 2010, the average stocking rate was just less than one head per hectare in the major beef-producing states. This is significant in a country where nearly 200 million head of cattle are pastured.

From 1970 to 2006, the area occupied by crops – mainly corn, soybean and sugar cane – increased 125 percent.

In the same period, the increase of pasture area was only 12 percent, while cattle numbers soared 116 percent. From 1985 onwards, the area allocated to fed cattle activity reduced; however, until 2006, 48 percent of cultivable land was still of grazing areas.

Much of the increase in pasture productivity can be attributed to introduction of improved forage species and water-spreading techniques such as dike-building and irrigation.

Chile
The European market has reopened to beef from Chile. The European Union had been closed to Chilean beef imports because of concerns over food safety and meat inspection.

Under the agreement reinstating Chilean beef imports, EU inspectors will visit Chile to verify the country’s cattle traceability system.

“We are very pleased to have recovered this important export market because it demonstrates that our country takes compliance with the systems of our buyers seriously and this is all in line with the excellent image and reputation that Chile has in the world,” said Agriculture Minister Luis Mayol.

The opening up of the market means Chile can now export 40,000 metric tons of high-quality beef to the EU.

New Zealand
The Trans-Pacific Partnership (TPP) must include total elimination of tariffs on agricultural and seafood products, according to leading New Zealand food producers.

A coalition of 18 New Zealand agricultural and food organizations, led by Beef + Lamb New Zealand and Fonterra Cooperative Group, has written to the ministers of trade and primary industries outlining its concern that some TPP members are seeking to avoid tariff elimination on some products.

The letter sets out to Ministers Tim Groser and Nathan Guy that the coalition will not support a TPP agreement that does not include comprehensive liberalization in the agricultural and seafood sectors by all participating countries.

The group says it is vital that the agreement provides comprehensive tariff elimination as set out in the objectives of the 2011 TPP Leaders meeting in Honolulu. The group is concerned that:

• If any one country is allowed to claim exceptions for sensitive products, other TPP partners will inevitably demand the right to do the same. This could quickly lead to the unraveling of the agreement.
  
  
• Allowing any one country to claim an exception for “sensitive” products sets a dangerous precedent for other countries in the Asia-Pacific region seeking to join the TPP Agreement at a future date.

South Africa
South African veterinary authorities reported late last year two new outbreaks of foot-and-mouth disease in Mpumalanga affecting cattle populations.

The World Organization for Animal Health (OIE) received follow-up reports that a total of 23,450 animals were found susceptible, out of which 39 cases were reported. No deaths were recorded and none of the animals were destroyed or slaughtered.

According to the OIE, the outbreaks occurred within South Africa’s FMD protection zone in the portion where vaccination for FMD is done by State Veterinary Services.

Vaccination is only allowed within this zone and may only be done by State Veterinary Services. Contact with wild species has been identified as the main source of the outbreaks. 

Clint Peck is former director of Montana’s Beef Quality Assurance program.