Consolidation within the Brazilian corned beef industry is causing concern among UK importers who fear a cartel, leading to higher prices. The industry has complained of poor returns for years and evidence suggests canners have been production led rather than cost efficient. One of the biggest packers has twice been forced to seek Chapter Eleven to avoid forced bankruptcy. A leading importer said: "There are only two major producers left because the business has been in turmoil for years, and Brazilian banks pressed for better returns. Dollar prices are expected to be steady until later in the year, when cattle prices start to firm. We then face the prospect of restricted supplies as the two major producers try to regain profitability." {{PROVISIONS }}

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