Where's the beef? In Brazil, it's at center stage

By Stephanie Beasley

SAO PAULO (Reuters) - The cattle are the stars at Brazil's 14th annual Feicorte International Beef Fair but these celebrities are actually admired for being pieces of meat.

Hundreds of cows, bulls and calves crowded the floor at Sao Paulo's Centro de Exposicoes Imigrantes, the city's largest convention center, on Wednesday night.

Most were indifferent to the thousands of people filing past as they dozed and ruminated, showing interest only when handlers led them through the evaluation and auction stages, a reminder of why they and the fair's attendees were there.

"The great return from this is to select a better breed each time," said Andre Mendoca, a buyer attending the auction for the Brahman breed.

Mendoca was one of many potential bidders at the auction eyeing the livestock while sipping cold beer and munching snacks.

With the pulsating music, flashing lights and confetti, the event had the feeling of a party. Indeed, many Brazilians feel there is reason to celebrate.

"Brazil is seen as the country with the cheapest beef in the world, and it will continue to be," said Roberto Barcellos, special projects director for the Marfrig beef company.

Brazil has the world's largest cattle herd and is the largest beef exporter, and looks likely to stay that way.

In March, Brazilian meat company JBS acquired U.S. companies Smithfield Beef Group and National Beef Packing Co for nearly $1.3 billion. The deals pushed its U.S.-based JBS-Swift unit past Tyson Foods Inc to make it the largest U.S. beef producer.

NOT COWED BY EU RESTRICTIONS

Brazilian cattle is highly regarded because it is mainly grass-fed and so free of the mad cow disease that has tainted beef exports from other nations like the United States. But its image as the beef king has suffered some damage recently.

In January, the European Union suspended beef imports from Brazil, citing food safety concerns about the meat's lack of traceability. The EU eased restrictions in February but is still only allowing beef shipments from 106 Brazilian farms.

Brazilian beef experts have said that at least 1,000 farms would need to be authorized for export to normalize trade.

"Brazil has practically never had a market outside of Europe," said Juan Lebron, director of operations for Assocon, the national cattle growers association.

"We don't have a better client."