Brazilian corned ceef producers have increased prices for European grade, used extensively by tertiary brand importers. The $2.00/case uplift has left some dealers exposed to promotional commitments made a few weeks ago when prices were weakening. With Uruguay announcing an outbreak of foot and mouth, it only leaves Brazil in the clear as Argentina deals with its own previously reported outbreak by mass inoculation of 35 million cattle. This method of control has been used before in South America, which in spite of the controversy here in the UK, has worked well in the past so Buenos Aires has no hesitation in going ahead on such a massive scale. Brazilian army patrols are guarding the borders in an attempt to avoid the spread of the disease which a source in Sao Paolo said would be catastrophic for the beef industry if it happened. "We intend to take every possible action, including sealing borders if necessary, to ensure we remain free." Argentinean authorities are supporting the temporary cost of factory closure by paying workers through a government benefit system. Frigorificos have been down to half shifts and the Hilton programme' to the US and Europe has been suspended. This particular cut of fresh beef enjoys a premium on quotas, which has been the economic mainstay of the industry. Its cessation has dealt a serious financial blow to all processors, hence the government support. {{M/E CANNED GOODS }}