Specifically, Li wants to breed an extensive herd using top Australian Brahman, Brangus and Droughtmaster bloodlines that would be suitable in sub-tropical Chinese regions where beef production is presently limited and the beef is of low quality.

Yuzal Fong, from Shandong Jiejian Beef Development business, is a beef processor from China’s cooler northeast region.

He’s interested in buying or establishing a cattle packing plant in Australia. He believes China’s beef future lies in using Australia’s herds, feedlots and meat processing plants to produce the meat and then importing beef carcasses into China for local processing.

Other investors want to import live Wagyu or Angus bulls and semen from Australia to improve the beef-producing genetics in local cattle herds.

Brazil
The Brazilian Agriculture and Livestock Confederation (CNA) has launched the Agricultural and Livestock Management Platform (PGA), which will hold all digital and online information relating to the registration and transporting of cattle throughout Brazil.

The PGA will be administered by the Ministry of Agriculture (MAPA), providing a transparent and fast way to collect information about the country’s beef production chain.

“Brazil’s meat exports have grown by almost 300 percent over the last 20 years, and we have the right conditions to produce even more, in a sustainable manner, and enter new markets,” said CNA President Kátia Abreu. “The PGA offers the conditions needed for Brazil to consolidate its position as a producer and exporter of beef.”

Last year, Brazil became the top exporter of beef in the world, with 1.4 million metric tons (MT), and second-largest producer, with 9.2 million MT.

The PGA and 27 Brazilian states’ identification systems will be integrated, allowing for the collection of information from all the beef- producing regions.

Minister of Agriculture Mendes Ribeiro Filho believes the PGA will make consumers, at home and abroad, feel safer about Brazilian beef. He explained that the model, which is initially focusing on livestock, will expand to include agricultural crops in the future. He added that one of the goals set by MAPA is to ensure the reliability and safety of Brazil’s food products.

Mexico
Mexico is in the midst of its worst drought in the last 70 years, with a considerable portion of the northern half of Mexico facing extreme or exceptional drought conditions.

As the dry conditions are expected to persist, Mexican cattle liquidation is anticipated to support domestic beef production, while suppressing beef imports into the market this year.

Mexico’s ministry of agriculture (SAGARPA) has forecast Mexican beef production in 2012 to decline 2 percent year-on-year. This lower production is predicted alongside SAGARPA’s expectations of a near-record number of live cattle exports in 2012, at 1.43 million head – mainly feeder cattle for the U.S.

While much of Mexico is either in a long-term or short-term drought, and estimates of cattle losses are uncertain, the Mexican cattle herd (including the beef cow herd) was estimated at 20.1 million head as of January 1, 2012, the lowest since 1963 (USDA).

Beef imports into Mexico in 2011 declined 11 percent year-on-year, to 186,922 MT, primarily due to a fall in volumes of chilled beef from the U.S. (down 9 percent) and Canada (down 25 percent) – the two largest imported beef suppliers in Mexico. Beef imports from Australia also fell 46 percent in 2011, to 861 MT.

In contrast, Mexican beef exports increased 45 percent in 2011, to 104,431 MT, as a result of a surge in the chilled trade to the U.S. (up 49 percent) and frozen shipments to Russia (up 542 percent). The U.S. and Russia were the two largest export markets for Mexican beef in 2011.

The rise in Mexican beef exports to the U.S. in 2011 was driven by a combination of factors, including increased supplies of Mexican beef, high beef prices in the U.S. and the relatively stronger U.S. dollar against the Mexican peso.

Russia, while traditionally sourcing beef from Brazil and Argentina, has increased orders from Mexico (and other suppliers) amid the shortfall in South American supplies in recent years. Mexican beef exports to Japan in 2011 declined 40 percent year-on-year, to 16,732 MT.

Japan was Mexico’s third-largest beef export market, remaining a relatively small import supplier in Japan, with volumes accounting for just 3 percent of total Japanese beef imports in 2011.

Paraguay
The president of the Paraguayan National Service for Quality and Animal Health (Senacsa) said the country should regain its lost animal health status following outbreaks of Foot and Mouth Disease in September 2011 and again in January 2012.

Following the second FMD outbreak, Paraguay’s sanitary authorities were removed and a new vaccination policy is being applied.

Felix Otazú told reporters that the goal is to continue to export beef and pork and secure new markets. In late 2011, Paraguay lost the status of “FMD Free,” as the country had to vaccinate for the disease after the outbreaks in the central-north region of the country. The outbreaks predominantly appeared in cattle, but indirectly affected pork trade as borders were temporarily closed.

Upon detection of FMD, the authorities declared a state of animal health emergency in the area and were forced to suspend meat exports.

Paraguay exported 141,000 MT of beef in 2011 and 170,000 MT in 2010. 

Clint Peck is the owner of Global Beef Systems, LLC.