December 31, 2007

Brazilian beef sector eyes Chinese market after strong growth in 2007

Brazil, the world's top beef exporter is hoping to tap the huge potential in the Chinese beef market after a year that has seen strong export growth.

In the first half of 2007, Brazil exported 1.36 million tonnes of beef worth US$2.2 billion, a year-on-year increase of 27 percent and 31 percent respectively. Exports for the full year are expected to reach 3.7 million tonnes, according to Abiec or the Brazilian Beef Exporters Association, whose members export 90 percent of brazil's beef.

Brazil now accounts for a third of the international beef market.

Meanwhile, the association is fervently hoping that Brazilian beef would catch on in China.

"If you don't open the market to Brazilian beef, you will miss the Brazilian barbeque," Pratini de Moraes, president of Abiec told media coyly, adding that as China's population becomes more affluent, more would be inclined to include beef in their diets.

Even as the EU continues to be the main market for Brazilian beef, demand is growing in developing countries, he said, adding that China would play an important role in future growth.  

Currently, China's market is closed to Brazilian beef due to disease concerns. However, Chinese inspectors have been sent to Brazilian plants and Brazilian officials are optimistic that the ban would be lifted soon.

Still, a picture of what may come may be exemplified in China's tiny but affluent territory of Hong Kong, which imported US$83 million worth of Brazilian beef this year.