Monday, September 13, 2010

Facing difficulties, Brazilian beef exports must account for US$ 2 billion loss in 2010

The Brazilian beef has been facing chewy times thanks to a string of burocratic and sanitary difficulties imposed by some leading importing markets, which have been reflecting readily in the exports revenue.
The beef exporting companies have been dealing with sanitary issues related to the exports to USA and EU while, at the same time, with commercial issues regarding the exports to Russia and Iran. If the problems persist, Brazilian government estimate the beef exporters will accumulate a US$ 2 billion loss in 2010 - alone, the hurdles imposed by the EU are responsible for accumulated losses amounting to US$ 1 billion since 2008. The situation became even more fragile after the United Nations embargo on Iran. The banks suspended their credit lines to companies trading with Iran leaving Brazilian beef industry with some US$ 500 million in receivables from the Persian country.

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