Notice to the Market
South Korea resumes beef imports from Uruguay and Saudi Arabia opens market to live cattle from Pará state
Barretos, December 14, 2012 – Minerva S.A. (BOVESPA: BEEF3;Bloomberg: BEEF3.BZ; Reuters: BEEF3.SA), one of the leading South American producers and sellers of beef, live cattle and their byproducts, which also processes beef, pork and poultry products, informs the market that Saudi Arabia has withdrawn its ban on live cattle exported from the State of Pará, reinforcing the position taken by the World Organization for Animal Health (OIE), which issued a statement declaring Brazil a country of negligible risk for Bovine Spongiform Encephalopathy (BSE) and confirming that Brazil is free of the disease. Japan, South Africa and China have blocked imports of beef from Brazil. It should be noted that the three markets represent slightly less than 0.5% of our net revenue, and that Brazil‘s Ministry of Agriculture has also reported that it will send official missions to these countries to provide more information about the case.
Minerva has eight cattle processing plants in Brazil, located in six states, as well as three plants outside of Brazil (two in Paraguay and one in Uruguay) that currently account for 27% of the company‘s processing capacity, which can be shifted to meet the demands of the markets that are not open to Brazil.
South Korea has also reopened its market for the import of beef from Uruguay, which had been under negotiation since 2005, when imports were blocked. South Korea, according to USDA figures, will be the fourth largest market for beef exports in 2013.
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