Brazilian shortages lead to beef price hike



As the demand for beef continues to rise, Brazil is struggling to meet outstanding orders due to a shortage of cattle, and sources in São Paulo see no let-up in the situation. Market economics last year encouraged farmers to slaughter more cows than usual, leading to the current shortage of cattle. Slaughterhouses have been on two-day weeks, with one of the largest, which normally processes 20,000 a day, down to 6,000 a week. Cattle prices are at an all-time high of R$75.00 (£21) per arroba - up 38% on last year's R$54.00 (£15). A weaker pound against the US dollar will mean higher costs to the trade.

Demand for beef will remain strong as new overseas customers begin importing it. The latest countries seeking Brazilian beef are Iran, Algeria and Venezuela.

Salmon sales hit by change in promotions



Red and pink salmon sales are down slightly year on year due to a change in promotional strategy, said importers. The heavy bogof activity in 2006 was switched to straight price reductions last year.

In the case of pink salmon, substantial price increases due to a poor pack in 2006 must also have had an effect.

However, pre-Christmas sales were much better than on reds, said importers. The introduction of Alaskan skinless and boneless will enhance the category, with first reports showing positive consumer acceptance.

Tuna companies accused of overfishing



Reports that some tuna canneries are cutting production due to costs or lack of raw material remain unconfirmed, but with continued poor fishing such action seems likely.

Forward trading for the peak summer sales period has virtually ceased. "Canners cannot contract for fish, and cold stores report few stocks held by fishing companies," said a source in Bangkok.

Campaigners for stricter fishing control say the current situation is evidence of overfishing. Fishing companies are refuting this, saying unusual ocean temperatures are forcing shoals lower, where they are out of reach.

Processors face pineapple supply problems



The supply of pineapples for processing has been hit by reduced production in Thailand, normally the largest exporter to the UK, which has caused shipment delays. Thai farmers are switching to other lucrative crops, which means the processing industry faces a long-term problem.

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