China Resumes Imports Of Brazilian Beef

The Brazilian Ministry of Agriculture announced on the 15th that China has lifted the beef embargo imposed on Brazil since September 4. Previously, China, the largest buyer of Brazilian beef, suspended beef imports in September due to cases of mad cow disease in Minas Gerais and Mato grosso states. After the export was suspended for three and a half months, Brazilian beef exporters suffered heavy losses.

The three-month embargo has lost nearly US$1 billion in the industry

According to reports from Brazil Globe and Sao Paulo Page, China is the largest buyer of Brazilian meat. After three and a half months of export restrictions, domestic producers have suffered heavy losses. According to calculations by Banco Itaú BBA, the average price of beef exports fell by 15.5% during the months of the embargo. The export of beef products in October this year fell by 43% compared with the same period last year. According to data from Brazil's Scot Consulting Company, the loss of beef exporters is close to one billion U.S. dollars.

After the news of the lifting of the ban, the common stock of Minerva, Brazil's main beef export company, rose 11.9%. Minerva said that the company has built seven factories throughout South America for export to the Chinese market, of which three are located in Brazil. After the lifting of the ban, they will immediately resume slaughtering and beef production specifically for the Chinese market.

In the opinion of Ricado Santin, Chairman of the Brazilian Animal Protein Association (ABPA), this news shows that the Chinese people have regained their confidence in Brazilian products. This is good for the entire protein product industry and is a great Good Christmas gift.

Bruno Andrade, director of the Mato Grosso Meat Institute (Imac), thinks this is good news, but also pointed out that the current Chinese purchases will not immediately return to the months before the embargo. Level, the impact of the resumption of exports on the Brazilian meat industry will only be highlighted from mid-February to March 2022.

Will the recovery of beef exports affect Brazil's domestic meat prices?

With the sharp increase in beef demand, the increase in year-end holidays, the 13th month of wages and the issuance of new government financial assistance, many people are also worried about whether meat prices will rise.

In this regard, Orlando Leite Ribeiro, director of the Department of Commerce and International Relations of the Ministry of Agriculture, said that the price of meat in the domestic market may not change much, because even if the meat supply in the market decreases, the domestic meat Class prices are already high, there is not much room for increase, and consumers are turning to other protein alternatives.