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Irish farmers are waiting to see if their livestock prices will rise following the uncovering of illegal practices by meat companies and public officials in Brazil.
The most immediate fallout will be for pigmeat. China and Hong Kong have imposed new restrictions on their enormous weekly imports of Brazilian product and may now source elsewhere. That would lift prices in the EU.
China’s import requirements are huge – one container of pigmeat leaves every hour for China from Denmark, the EU’s top exporter.
Irish companies are exporting there and are watching developments.
Beef and poultry
There will be fallout for international beef and poultry markets also. The European Commission has banned imports from four companies which were named in the Brazilian investigation and which are approved to sell into the EU. Two have been supplying poultry meat, one beef and one a mixture of product including horsemeat.
For cattle farmers here, a key issue will be whether the European Commission imposes wider bans or stricter inspection requirements on Brazilian meat in the coming days. There is pressure on the EU from farm organisations and politicians to do so.
Friday’s raids by more than 1,000 Brazilian police on 200 premises owned by 30 meat companies caught EU markets unawares.
The Commission learned about the crackdown from media reports. It is seeking further information from Brazilian authorities.
China’s move to restrict Brazilian meat imports has been followed by Japan, Canada, Mexico and Switzerland.
In Brazil, 21 companies remain under investigation and some 20 public officials have been accused of taking bribes. But the government has launched a vigorous defence of its food industry.
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