May 1, 2006

 

China gives Brazil greater access to meat market

 

 

Brazil's Agriculture Ministry said late Thursday (Apr 27) that China had granted export access to eight chicken-packing units and five beef-packing houses, but beef exporters said Friday that they expect a long wait before sales to China actually occur.

 

"It's nice that they are increasing the number of meat packers that can sell meat to China, but it would be nicer if they actually let those companies sell to China. Until now, we have not shipped a kilo to those guys," said Antonio Jorge Camardelli, executive director of the Brazilian Beef Exporters Association.

 

China had recently only permitted chicken exports from two chicken-packing units and three beef-packing units in Brazil. China is considering expanding the list to include 16 more chicken-packing units and 16 more beef-packing units. The properties are chosen based on quality control and sanitary measures set by the Chinese government. In some cases, only one or two units of a meat-packing corporation's properties are permitted to export to China.

 

"China has never imported chicken because they've always had a surplus, but this move shows that they are unable to control bird flu and might need to look for supply elsewhere," said Daniel Dias, a chicken market analyst at Institute FNP, an agribusiness market research firm in Sao Paulo.

 

"China permitting those companies to export is a step in the right direction at least. Now it's a matter of playing table tennis with them. Who knows how long that back and forth negotiating is going to last," said Fabiano Tito Rosa, a beef market analyst at Scot Consultoria, an agribusiness consultancy.

 

Chinese veterinarians were in Brazil from Mar 7 to 20 to visit the plants recently granted permission to export.

 

The chicken export units are located in Parana, Santa Catarina and Rio Grande do Sul, in the heart of Brazil's poultry country.

 

The beef units granted access to the Chinese market are located in Goias, Mato Grosso, Sao Paulo and Rio Grande do Sul.

 

Meat exports to China have been allowed by temporary permits only prior to Thursday's announcement.

 

"Now these plants are permanently allowed to sell meat to China," said Odilson Ribeiro, an agricultural trade negotiator at the Brazilian Agriculture Ministry.

 

Brazil's beef industry has been trying to break into the mainland China market for years, but sanitary barriers and low beef-consumption habits have impeded exports.