Key facts
- Brazil's Agriculture Ministry is implementing new inspection procedures for meat and meat derivatives.
- The EU plans to ban imports of certain Brazilian products, including beef and poultry, starting in September.
- The ban is due to EU restrictions on antimicrobial substances used in food-producing animals.
- Brazilian meatpackers are optimistic about reaching a deal before the September deadline.
- The EU rejected Brazil's proposed transition period for implementing new antimicrobial regulations.
Brazil's Agriculture Ministry has begun implementing new inspection procedures for meat and meat derivatives to comply with European Union trade requirements, according to Globo Rural. This action is aimed at preventing an EU ban on Brazilian products such as beef, poultry, and eggs, which is slated to take effect in September.
The potential ban stems from EU regulations restricting the use of certain antimicrobial substances in food-producing animals. The EU has prohibited these products since the early 2000s, with compliance becoming mandatory for European producers in 2022 and now being extended to third countries.
Despite the looming deadline, Brazil's meatpacking industry remains confident that negotiations between the government and the EU will lead to the country's reinstatement on the bloc's approved exporter list. This optimism is based on technical talks and a private-sector protocol designed to segregate cattle that have never been treated with antimicrobials. President Lula's involvement in political discussions, including at the G7, is expected to accelerate these negotiations.
However, the EU has rejected Brazil's proposal for a transition period through 2029 to fully implement the new antimicrobial rules, as Brazil currently lacks the necessary traceability for the entire production cycle. The EU's decision to remove Brazil from its list of authorized exporters has already impacted Brazilian meat companies, with shares of BRF, Minerva Foods, and JBS experiencing declines. The United Kingdom is also anticipated to follow the EU's lead in suspending purchases of Brazilian animal products.
The EU ban could affect approximately $2 billion in Brazilian agribusiness exports, although the volume purchased by Europe constitutes about 3.5% of Brazil's total shipments. Losing the European market would mean forfeiting the premium prices paid for Brazilian beef and could potentially weigh on cattle prices, though the industry suggests products could be redirected to the domestic market.