August 2, 2016

Brazil cashing in on China beef market

Brazilian beef exporters are cashing in on the China market as demand for cow's meat outpaces production, according to a report from Macau Daily Times.

The news report said that Brazil had overtaken Australia as the biggest shipper of beef to China, which is suffering from a production deficit.

Brazil boasts ample supplies and low prices, and beef exports to China by companies including JBS SA, Minerva SA and Marfrig Global Foods SA increased 65% in the first half of the year.

It was reported that beef consumption in China was surging and that only the US was importing more beef than the East Asian country.

"China will have a major impact on the beef trade", Miguel Gularte, head of JBS's Mercosul beef unit, was quoted as saying. "It's a fantastic market for Brazil [because the Asian country has] "hundreds of millions of people moving to consume red meat".

Per-capita consumption of beef in China is forecast to reach a record 3.864 kilogrammes this year, compared with 3.029 kilos 10 years ago, according to estimates by the Organisation for Economic Cooperation and Development, the Macau paper said.

Imports to China (including Hong Kong) in 2016 is forecast by the US Department of Agriculture to jump 22% to 1.225 million tonnes. This is an almost fourfold increase from 2012.

At present, imports now account for 36% of demand, up from 25% last year.