Brazil's beef export trade with Europe has virtually ceased since the EU vigorously applied its farm accreditation rules for cattle traceability.

It could take Brazil's farmers some time to meet the standards required for exports on a significant scale to resume.

In the meantime, British beef producers have been enjoying a welcome boost to their prices.

According to a report delivered yesterday in Edinburgh to a gathering of farming journalists and MSPS, including Cabinet Secretary Richard Lochhead, Brazil may never again be as big a threat to the British beef industry.

The report was compiled by a group of 16 young farmers back from a study tour of Brazil that had attracted sponsorship from a wide range of sources, including the newly set up "Cameron Travel Scholarship Trust".

Whilst the group were acutely aware that the Brazilian authorities were only allowing them to see the best of Brazil's agriculture, they also noted that the country was increasingly targeting beef exports to new emerging markets in Asia and Africa.

Brazil is the world's largest beef producer, with 207 million cattle and exports of more than 2.5 million tonnes. Russia, Egypt and, until recently, Europe were the biggest markets, with Britain importing 25% of the EU total.

On average, Brazilians eat 37kg of beef every year, and if they ate an extra 3kg, Brazil would not have enough beef for export.

In a vast country where statistics are hard to comprehend, of the 220 million hectares of pasture available, it is estimated that as little as 150 million hectares are currently grazed.

Significantly, beef cattle are giving way to sugar cane production for ethanol on the more fertile land.

There are 350 sugar cane plants now operating in Brazil, producing 20 billion litres of ethanol and 30 million tonnes of sugar.

Of the 20 billion litres, only 3 billion litres are exported. However, by 2012 it is predicted that there will be 412 plants producing 38 billion litres of ethanol, leaving an export surplus of 10.5 billion litres.

Currently, 6.3 million hectares are cultivated for sugar cane production, and projections show that by 2020 that will have more than doubled to 13.9 million hectares.

Displacing beef cattle to poorer land with harsher climatic conditions may erode their competitive advantage.

Andrew Stewart, from Lesmahagow YFC, reported that at the time of their visit in December, Brazil's farmers were getting approximately £1.60p/kilo deadweight for their cattle. The predominant breed was Zebu, which produced light carcasses of about 200 kilos.

In common with the other members of the group, he had been impressed by the support given to Brazil's farmers from their government and the non-farming community in a country where agriculture accounts for 33% of GDP.