de Menezes, Ta’s C.

Bovine spongiform encephalopathy (BSE) has caused turbulence in international beef markets over the last 40 years and resulted in severe economic consequences for countries with identified BSE cases. Brazil’s latest atypical BSE cases occurred in 2021 and 2023, and China banned Brazilian beef imports in each case. This study employs a computable general equilibrium model to assess the economy-wide impacts of BSE in Brazil due to negative domestic and international market reactions. Decreased beef exports lead to welfare losses for Brazil, while Brazil’s most important competitors in the international market for beef benefit from trade diversion.