The Lula government is concerned about the European Union veto on Brazilian meat, effective in September, which could raise domestic prices ahead of elections.
The European Union excluded Brazil from the list of countries complying with rules against excessive use of antimicrobials in livestock. The country did not submit the necessary information to prove production meets requirements, though the bloc left open the possibility of reversal.
The European bloc is the second largest market for Brazilian meats, behind only China. Members of the Agriculture Ministry and agro representatives calculate an annual impact of R$ 2.2 billion if restrictions remain.
The fear is that the cost will be passed on to Brazilian consumers. The government is trying to reverse the decision at least partially.