The price of beef is expected to rise by 15 to 25 percent over November and December following Chile’s recent decision to halt beef imports from Brazil. The ban was imposed after three cases of foot-and-mouth disease were documented in southwestern Brazil in October.
Chile’s Department of Agriculture and Livestock (SAG) announced the beef ban on October 10, closing the door to a third of Chile’s beef supplies. The move sharply increased demand for Argentine beef and forced a price hike of 10 to 12 percent.
The good news is that super markets have been absorbing the cost of the price hike in the short term, only raising the price on select cuts by 5 percent. According to Alejandro Maira, general manager of Quinto Cuarto, supermarkets, comprising 55 percent of national beef sales, are willing to continue to absorb the rising prices. Butchers have been unable to moderate the higher prices and are already charging more for the product.
More than 40 countries have joined Chile in banning beef exports from Brazil, the world’s largest exporter of the meat. Brazil’s President Luiz Inácio Lula Da Silva recently invited U.S. President George Bush to his home for a beef barbeque to show the world that at least in Brazil, it’s still what’s for dinner.
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