The biggest news in the global beef market over the last few weeks has been the granting of access for Brazilian beef to the U.S. market. Brazil has been granted access to the “Third Country” quota section which limits imports to 64,805 tons per annum. This quota is shared with Ireland and some Central American countries so as you can imagine the Irish beef industry is not too happy with this development, as Brazil could fill the quota very quickly leaving no opportunity for others.
While volumes are small the implication is bigger. For one thing, Brazil could decide to send more product outside the quota and pay the additional 26% tariff. Secondly, the quota system could be revised in future to allow more Brazilian imports. Thirdly, it probably moves Brazil a step closer to access to the beef markets of Japan, Korea and others.