U.S. Beef Imports to Brazil Trump Impeachment Talk

RIO GRANDE do SUL, Brazil -- As the country prepares this week for an official hearing to finalize the impeachment of President Dilma Rousseff, Brazil’s current ag minister is talking about U.S. beef imports.

Blairo Maggi, while attending a farm show Saturday visited with several farm unions about agricultural policies. The government official confirmed that Brazil will secure its beef supply with U.S. imports. It’s worth mentioning that Maggi did not comment on this week’s impeachment case. By midweek, Rousseff could be officially impeached for budget fraud.

U.S. Beef Imports

Because Brazil recently announced open trade with the U.S., the South American country’s cattle producers are concerned about too much beef leaving the country. Restrictions on beef trade between the two countries were just lifted in August.

Within five years, Brazil expects to export 100,000 tons of beef to the U.S.

In addition, history shows that when the U.S. opens its borders to Brazilian products, it is likely that many other countries do the same.

Minister Maggi eased his country’s producers’ minds on tight supplies by reassuring them that the U.S. imports will be sufficient.

“Brazil can export [beef] to the United States and, in the case that the chain needs, there will be imports of beef from there. They are allowed to do the same. And we also have other major producing partners, like Argentina, to supply us in the case of scarcity. I don't believe in the possibility of lack of supply,” affirmed Maggi.

Asked by Agriculture.com about the future of the corn and soybean market, Maggi said there will be a reversal of what is happening right now in the agricultural industry in 2016/2017.

“I believe that hog and poultry farmers will be happy, while corn growers will start to cry out. That is the normal market cycle, and the government will not intervene. Sometimes you win, sometimes you lose. Next year, I believe we will have record corn and soybean crops without any imports from the U.S.,” he said in a quick conversation exclusively with Agriculture.com.

Other complaints heard by Maggi in this meeting were about the imports of milk from Uruguay and lower subsidies for purchases of agricultural machinery.

“I think that the Brazilian agriculture is competitive. We can compete with everyone, and the chains of each country should coordinate to import just during the off-season. Regarding subsidies, I believe no industry should be subsidized forever. We still will have subsidized credit for agricultural machinery; it is important to increase the yield. I hope we get to the roof. But other farm subsidies may be cut,” summarized Maggi.

New Administration

The country’s ag minister sees the southern state of Rio Grande do Sul (RGDS) as the most diverse in the country. And, RGDS will get special attention during the new Michel Temer administration. There seems to be proof already, with Maggi making his seventh visit to RGDS in his short time as minister, with an eighth already scheduled, he said.

Producers, in general, are a priority for the new administration.