March 30, 2020

China imports additional Brazilian beef in March

Industry sources said China, the biggest purchaser of Brazilian beef, is buying more after low purchase numbers in January and February 2020 because of COVID-19, reported Reuters.

Reuters' source said while prices aren't as high as it was at end-2019, beef is still priced well plus the exchange rate is favourable for Brazil exporters.

Brazilian BRF has dropped 25% against the USD. Brazil's largest meatpackers, Marfig Global Foods, Minerva and JBS will benefit from China's big beef purchases.

While export data does not yet show China's increased purchases, Itau BBA consultant Cesar de Castro Alves said China's beef imports from Brazil have risen steadily.

Alves said for China to supplement dwindling meat supplies caused by the African swine fever outbreak in the country, it will need about 2.9 million tonnes of beef in 2020.

Agrifatto consultant Gustavo Machado said China had priced almost double prices since 2019.

-   Reuters