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Brazil's beef industry: key to EU-Mercosur trade deal
Reuters Events SMR and Advanced Reactor 2025
Brazil's beef industry: key to EU-Mercosur trade deal
By Morgann JEZEQUEL
Rio De Janeiro (AFP) Dec 5, 2024

A central component of the drama around the trade deal South American countries want to seal with the European Union is the Brazilian beef industry and its practices.

Of particular concern to some European countries -- and protesting farmers -- is traceability in Brazil's meat chain and how it relates to ensuring beef does not come from cattle grazing on deforested land in the Amazon.

- Brazil, a beef giant -

Brazil, Latin America's agricultural titan, is the world's biggest exporter of beef and the second-biggest producer. Those rankings put it in the sights of European detractors who want to block the Mercosur trade deal.

Although Brazil affirms that its beef production is of the highest quality and environmentally respectful, shortcomings in its tracking system and the links to deforestation are mobilizing critics, who fear European farmers would face unfair competition.

Much of the wariness comes from France and Poland, but farmers in Belgium and Italy have also protested against the trade pact.

Last month indignation flared in Brazil when the boss of France's Carrefour supermarket group said his French outlets would no longer sell Mercosur-origin meat because it did not meet national standards.

Brazilian meat suppliers halted deliveries to Carrefour-run supermarkets in Brazil, forcing him to apologize.

- Tracing system -

Brazil does not have a national, comprehensive and individualized tracking system for its beef industry, which in 2023 counted 238.6 million heads of cattle.

The only individualized traceability system is one that is optional, unless for exports to certain markets such as Europe.

It does not necessarily track an animal at birth and focuses mainly on health standards without including environmental data.

That is a problem in the Amazon, where nearly half of Brazil's cattle is raised, and where beef production has been the main cause of extensive deforestation.

Between 1985 and 2022, some 77 percent of the deforested land in the Amazon was made into grazing pastures, according to the organization MapBiomas.

Brazil's current government, under President Luiz Inacio Lula da Silva, has made strides in reducing the pace of deforestation in that vast rainforest region, which plays a crucial role in the fight against global warming.

But squatters, loggers and ranchers continue to illegally take over parcels of land there, cutting into natural reserves and territory belonging to indigenous communities.

- Stepped-up measures -

An EU law prohibiting imports of products derived from deforestation is due to come into force from the end of December 2025, which has spurred Brazil to step up its traceability regime.

In May, the agriculture ministry announced a working group of businesses in the sector that would develop a system able to verify the exact origin of each animal and to have checks through the entire chain.

Authorities are eyeing a launch in 2027, with the system being fully operational in 2032.

- Cattle 'laundering' -

Under pressure from NGOs and the courts, Brazil's biggest agri-food companies in 2009 pledged to stop buying beef coming from deforested Amazon land.

That has resulted in direct suppliers being monitored by packaging companies.

But "there are two or three other links in the chain" where oversight is lacking, such as "with calves that are sold to breeding farms and then fattening farms," Andre Guimaraes, director of the Amazon Environmental Research Institute (IPAM) NGO, told AFP.

Such practices make checks difficult and encourage the "laundering" of cattle, he said.

- Ear tags -

The big Brazilian companies in the sector stress the progress made. But they admit they face challenges when it comes to indirect suppliers.

Contacted by AFP, major groups JBS, Minerva Foods and FriGol said they have implemented technology to address that and have united behind initiatives to identify animals with electronic ear tags.

But, according to Cristiane Mazzetti, spokeswoman for Greenpeace Brazil, "the sector is still behind," since, while the tools existed, "there was a lack of political will and investment."

mje/tmo/rmb/bjt

Carrefour

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