Meatpacking stocks rise, even with exports suspended by the “mad cow”

The shares of meatpackers operate at a high this Monday, 6, even after the Ministry of Agriculture announced, on Saturday, 4, the temporary suspension of beef exports from Brazil to China. The interruption of sales was decided after two cases of Atypical Bovine Spongiform Encephalopathy (BSE) were identified, known as “mad cow disease”, in Mato Grosso and Minas Gerais.

The advance of the shares occurs because companies have reaffirmed that they will continue to meet the demand.

Meatpacking company Minerva, for example, informed that it will continue to supply China through four slaughter plants located in Uruguay and Argentina, without compromising market share and customer relationships. In addition, the company adds that it exports to China through its units in Barretos (SP), Palmeiras de Goiás (GO) and Rolim de Moura (RO).

The slaughterhouse Marfrig informed that it has, in South America, thirteen plants qualified for China, seven in Brazil, four in Uruguay and two in Argentina.

In the first six months of the year, Brazilian exports by Marfrig to the Chinese market represented 5.6% of consolidated net revenue. In the morning, Minerva shares rose 2.31%, Marfrig ON gained 1.27% and JBS ON – which has a unit in the United States – rose 1.86%.

In a statement, Marfrig stated that, because the two cases of BSE identified in animals in Minas Gerais and Mato Grosso are considered atypical, the World Organization for Animal Health (OIE) “should keep Brazil’s status as risky unchanged. insignificant, “ending the episode”.

“The treatment that has been given to the case proves the efficiency and transparency of Brazilian mechanisms for traceability and sanitary control,” stated the company in the document.

On Saturday, after the ministry announced the suspension of exports, Lygia Pimentel, director of consultancy Agrifatto, said the situation should return to normal in 10 to 20 days.

The expert explained that, by protocol, when cases of the disease are identified in Brazilian territory, the competent authorities need to laboratory evidence of the origin of the disease. “At first, this occurs in domestic laboratories, but later a counter-proof is needed in an international laboratory authorized by the buyer, in this case, China,” he said.

The interruption of shipments occurred voluntarily by Brazil, until the results are analyzed and all issues are clarified, comments Pimentel. As the cases of “mad cow” disease were reported by the Ministry of Agriculture as atypical, that is, when the problem was developed within the animal’s own body, without risk of contamination, the reestablishment of exports is a matter of time, he said.

“When the results of all the tests come out, Brazil must write a letter and send it to the Chinese to understand what happened and, as a result, with the approved explanations, the market will be released again,” said the specialist at Agrifatto.

She added that business should quickly normalize, as China still has a high need to import Brazilian beef amid increasing reports of African swine fever cases in the country. Added to this, the bottleneck left in the international market by the restriction of Argentine beef exports, another important supplier of animal protein to the Chinese.

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