Uruguayan Meat Sector's Expectations On the EU-Mercosur Agreement

“The sustainability of Uruguayan livestock is backed by 400 years of history…”

Conrado Ferber Artagaveytia is the president of the National Meat Institute of Uruguay, a livestock farmer, former deputy, and director of Duplex Comunicación.


AgriBrasilis – What ensures the sustainability of Uruguayan beef?

Conrado Ferber – The sustainability of Uruguayan livestock is backed by 400 years of history, explained by the natural conditions the country offers, without ecosystem disruption. The natural landscape and native grasslands form the Pampa biome, which has the highest degree of conservation in Uruguay. Livestock farming and the biome coexist harmoniously in the country.

Regarding greenhouse gas emissions, studies show that livestock farming in Uruguay tends to be climate-neutral in terms of methane emissions, mainly due to the stability in the number of animals. In other words, Uruguay’s livestock farming does not contribute to global warming.

Furthermore, the sustainability of livestock farming in our territory is supported by constant monitoring of natural resources by the government. Both satellite monitoring and environmental impact measurements, based on internationally validated methodologies, demonstrate the sustainability of Uruguayan production.

“Uruguay’s livestock farming does not contribute to global warming…”

AgriBrasilis – According to INAC, Uruguay is the only country that presented a comprehensive solution to the requirements of Regulation EU 2023/1115. What are these demands, and what solution was presented?

Conrado Ferber – The European Union will require guarantees that beef exports and imports (among other products) do not come from farms where deforestation occurred.

In Uruguay, the solution is based on public information systems: land registry and its georeferencing, the mandatory individual traceability of cattle—from the farm to the slaughterhouse—and the registry of native forests.

When we know for certain which farms each animal passed through, the competent forestry authority can certify that none of these properties were deforested, a verification carried out throughout the producing chain in the case of beef. In short, the solution implemented by Uruguay is based on existing public assets.

AgriBrasilis – What differentiates Uruguayan beef from that of other Mercosur countries?

Conrado Ferber – Uruguayan beef stands out in several aspects. First, the herd is predominantly composed of beef cattle breeds and British breeds, grazing in a native ecosystem. This provides a quality differential for our beef.

At the same time, Uruguayan livestock farming is supported by a series of public assets, allowing consumers to be assured of safety, quality, and environmental traceability. Thus, this combination of a natural environment favorable to livestock farming, a 400-year history of production, suitable genetics for quality production, and a series of public assets that provide guarantees to consumers, summarize what differentiates our beef.

AgriBrasilis – What are the pros and cons of the EU-Mercosur agreement for Uruguay’s beef sector?

Conrado Ferber – The agreement presents significant commercial opportunities. The gain stems from improved tariff conditions for access to the European market. It is a high-volume and high-value market: Europe has the largest number of middle-high and high-income households. Moreover, it is a highly protected bloc with customs tariffs.

The agreement allows for tariff reductions for a very limited volume of the product: a quota of 99,000 tonnes is created for Mercosur beef. This represents 1.6% of the annual consumption in UE. This allows Uruguay to increase its sales in such an attractive market.

AgriBrasilis – Why are some countries and European institutions against increased imports of Mercosur beef?

Conrado Ferber – Some European institutions are against the import of agricultural products from Mercosur, arguing that the countries in the American bloc do not meet European standards. This criticism is not relevant since all products entering the EU must comply with the strict standards set by European authorities.

Other organizations, particularly those representing farmers, express concern about the increased supply of beef that will compete with local production. European authorities have taken these concerns into account, which is why they have granted a very limited access quota for Mercosur beef.

AgriBrasilis – What will the additional export quotas be?

Conrado Ferber – The agreement creates additional quotas for beef, pork, and poultry.

For beef, the quota is 99,000 tonnes of carcass weight. Of this volume, 55% is reserved for chilled beef and 45% for frozen beef. The proportions in which these quotas will be divided among the four Mercosur countries are yet to be defined. The in-quota tariff is 7.5%. These imports are expected to begin progressively, in five annual stages, and the administration will be managed by the Mercosur members themselves.

Additionally, it was agreed to immediately eliminate the tariff within the Hilton quota for the four Mercosur members, reducing it from 20% to 0%. This is not an additional quota but rather a pre-existing one, now without the tariff burden on this trade flow.

 

READ MORE:

Labor Shortages and Logistics Issues Limit Brazil’s Fruit Exports