The commercial impact of one of the biggest scandals to hit the Brazilian meat sector is kicking in.

While Brazil has long been among the lower-priced beef-producing countries, prices took a dip last week.

For the previous six weeks they had been trading at the equivalent of €2.60/kg or higher but last week they dropped by the equivalent of 11c/kg to below €2.50/kg.

JBS, the biggest beef producer in the world, has announced that it is curtailing production, an indication that sales have been disrupted.

Market response

This will be partly a response to the ongoing investigation and scrutiny of produce on its way to international markets. It is also a knock-on effect of buyers being more hesitant in placing orders. It will be a temporary disruption, but a disruption nonetheless.

Irish prices

At home, Irish prices crept up a further 3c/kg to €3.79/kg on average for R3 steers. This closes the gap with prices in Britain to 26c/kg, the lowest in some time.

British prices have been slipping due plenty of cattle being available and currency moving to 87p=€1 for week ending 24 March, though it has recently come back to 85p=€1.

Other markets

Internationally, Australian prices dipped by the equivalent of 10c/kg for week ending 24 March, while US prices continued their recent upward movement.

Prices there were the equivalent of €4.22/kg, a 6c/kg increase on the week and a 28c/kg increase over the past six weeks.

IFA response

Meanwhile, the IFA has been in Brussels over the last two weeks making representations on the Brazilian meat scandal.

Livestock chair Angus Woods said the chair of the European Parliament’s agriculture committee, Czeslaw Siekierski, has tabled an oral question for the plenary agenda in Strasbourg on Monday afternoon on how the Brazilian revelations will affect ongoing trade talks with Mercosur countries and whether it was now time to review bilateral negotiations and remove meat from the trade agenda.

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Long read: can Brazil afford to have a meat scandal?