Beef supply chain disrupted after mad cow disease confirmed in Brazil

World agricultural authorities are now on alert after mad cow disease was detected in a nine-year-old animal in Brazil. See the implications here.

Brazil will halt beef exports to China after a case of mad cow disease was confirmed in Para.

The suspension is part of an animal health pact previously agreed between China and Brazil and is expected to be temporary. The news comes as a blow to Brazilian farmers and puts the world’s agricultural leaders on alert.

The case was confirmed in a nine-year-old male cow, and the Ministry of Agriculture and Livestock (Mapa) has been working with the Brazilian meat market.

The World Organisation for Animal Health was notified and samples sent to the reference laboratory in Alberta, Canada, which will be able to confirm whether the case is atypical.

The animal, raised on pasture, without feed, was slaughtered and its carcass incinerated on site.

A case of mad cow disease has been confirmed among Brazil’s cattle herd.

The official Brazilian veterinary service is carrying out the epidemiological investigation, which may be continued or terminated depending on the result.

“All measures are being adopted immediately at each stage of the investigation and the matter is being treated with total transparency to guarantee Brazilian and global consumers the recognised quality of our meat,” Brazil’s Agriculture Minister Carlos Fávaro said.

Following the official health protocol, exports to China will be temporarily suspended from this Thursday. However, dialogue with the authorities is being intensified to demonstrate all the information and the prompt re-establishment of the Brazilian meat trade.

News broke of the suspected case two days ago with agricultural leaders saying a confirmed case would severely disrupt the meat industry.

Brazil and Australia share customers including China and the US, which are both big importing countries for beef. Brazil is the world’s largest exporter of beef.

Episode 3 market analyst Matt Dalgleish said Brazil’s temporary suspension on exports was likely to be a “short-term hiccup” if the case proved to be atypical.

“There was an atypical case in 2021 and they were out (of the market) for about three months, but once they resumed they went back to full steam ahead,” he said.

“If they can demonstrate it’s atypical then over time those markets get established again reasonably quickly.

“Flows to global supply may be disrupted but you’ve got the US restocking its herd so they have plenty of product to send offshore as well as domestic.”

Mr Dalgleish said the disruption would only be a problem if it extended long term.

Brazil’s temporary exit from the Chinese market could also prove a win for Australian producers. With 10 abattoirs are still waiting to regain access following China’s informal trade bans, Mr Dalgleish said the supply disruption could encourage China to reopen that trade sooner.

“If there’s a delay of a month to three months, it could be imperative to get more product in,” he said.

“It might be an added reminder to consumers that the Australian product is a superior product... that we are a more reputable and safer trading partner.

“We don’t compete directly with Brazil in any market but these are the things that might allow us to resetablish our market share.”