December 11, 2019

 

Beef exports from Brazil set to hit new record thanks to demand from China

 

According to exporter group Abiec, Brazil will also improve Asian trade ties at attempts at fresh beef exports to Japan, and expand sales in Russia, reported Reuters.

 

Abiec reported Brazil's 2019 beef exports hit 1.828 million tonnes, higher than the record 1.643 million tonnes set last year. Volumes are estimated to reach 2.067 million tonnes in 2020, a 13% increase.

 

Exports increased thanks to the African swine fever outbreak in Asia, with demand from China growing to supplement dwindling meat supplies.

 

Antonio Camardelli, head of Abiec said the projected 13% increase in 2020 will come from new market access, such as Japan. Japan does not purchase fresh beef from Brazil yet.

 

Camerdelli said local exporters will maintain export supplies to Asia and increase sales in Russia, which is compensating from a drop in beef imports sourced from Argentina. 

 

He added that Russia approved nine Brazillian beef exporting plants and may approve eight more by February 2020 as Argentina redirected beef sales to the more profitable China.

 

He also said a United States mission will arrive in Brazil to talk about cattle vaccination standards by the first quarter of next year, which opens the possibility of reopening the US market for fresh beef imports.

 

Abiec projected Brazil's 2019 beef exports to hit US$7.449 billion in value, with 2020 to reach US$8.568 billion.

 

China has approved 37 Brazilian beef suppliers by December 2019, said Abiec. The group noted that beef exports from Brazil to China will be more competitive once Beijing reduces or drops a 24% import levy on meat from South America.

 

A study on Brazil's beef exports to China has been commissioned by Abiec and its findings will be shared with the Brazil government as guidance for future trade negotiations, not just with China but with other countries as well, said Camerdelli.

 

Brazil's beef exports to China totalled 410,444 tonnes, up 9.5% between January and November 2019, said Abiec.

 

Camerdelli expects new Brazilian suppliers to be authorised after Chinese officials visit the country from December 15, 2019 to assist local meatpackers to complete necessary documentations for export to China.

 

-      Reuters