MercoPress. South Atlantic News Agency

“Mad cow” could benefit Mercosur

Panic caused in Europe by the "mad cow" disease following renewed outbreaks in France, could have favourable financial consequences for natural beef producing countries such as Argentina and Uruguay from Mercosur.

According to the Paris weekend press quoting Argentine experts, the "mad cow" disease never existed and "will never appear" in Argentina because cattle is fed on pasture and not with animal protein meals, "the origin of mad cow". However Argentine beef exports to the European Union. ?115.000 tons in 1999--, are limited by quotas particularly for prime beef, such as the so called "Hilton quota" which is restricted to 28.000 tons annually.

Argentina exports 350.000 tons per annum, and Uruguay 280.000 tons, and although Argentina has a greater potential, the home market consumes 80% of its production and Uruguay, 45%.

The French press speculates that if the current panic persists and consumers distrust local beef, the European Union will be forced to open its market to natural beef producing countries such as Argentina and Uruguay.