April 30, 2014

Brazil's beef exports to China may rise over 15% annually

An increase in imports by China, which are expected to see two-digit growth until 2018, will benefit Brazilian beef producers, according to an analysis from Netherland's bank Rabobank.

The reports stated that total imports will increase by between 15% and 20 % per year over the next few years, which will make China the most important global destination in the near future and will tend to favour Brazil and the US, which are the largest beef producers.

The bank noted that China had become a large importer of beef in 2013, buying 297,000 tonnes or 3.79 times more than in 2012.

According to a document cited by Reuters, the lack of beef cattle in China is a structural issue and local industry faces many challenges and "is behind other large world producers in all key ways such as genetics, breeding, productivity, management and sources of pasture/feed."

Rabobank also forecasts that China will allow total access to its market by beef from Brazil in the next few months and by US beef by the end of the year.

In the first quarter of 2014, the main destination for Brazil's beef was Hong Kong, which bought almost 16% more on-year or 92,770 tonnes.