With China’s Ban, Brazilian Beef Exports Drop 43% – 09/11/2021

Fresh and processed beef exports moved 109,000 tons in October, the Brazilian Association of Refrigerators (Abrafrigo) reported in a note. This volume brought in 541.6 million US dollars in revenue for the country. Compared to the same period last year, there was a 43% decrease in volume and 31% in revenue.

The reason for the decline was China’s ban on Brazilian meat after two cases of Mal da Vaca Luca occurred in Brazil in early September. The siege continues.

According to Abrafrigo, in October last year, 190,000 tons of meat were exported.

According to livestock technicians associated with the National Agriculture and Livestock Federation (CNA), there is still no official signal from China to end the ban, and if the measure continues until December, the loss is estimated at 1.8 billion US dollars.

Last weekend, consultancy IHS Markit told the press that China would look for new global suppliers of beef to fill the gap left by Brazil, and recently, the Chinese government allowed the export of Uruguayan slaughterhouses, which would have valued Aruba’s ox there.

In 2010, China did not buy beef from Brazil for two years due to an atypical case of Mal da Vaca Louca that occurred in Paraná.

Abrafrigo stated that last month, only the remaining batches of meat were sent to China, totaling 27.7 thousand tons. In the previous month, beef exports to China totaled 132.4 thousand tons.

According to the organization, in this year’s accumulated result, Brazilian beef exports have already reached 1.6 million tons, down 2.4% compared to the same period last year.

However, in revenue, there was a growth of 16%, since this year the product became more expensive in the international market. In 2020, until October, the country’s turnover amounted to 6.8 billion US dollars, and this year, in the same period, total exports have already reached 8 billion US dollars.

Even as the ban continues, China (along with Hong Kong) remains the main destination market for Brazilian beef, with 917 thousand tons imported, 56.9% of the total transported by Brazil so far. Then look at the United States, where 96 thousand tons were imported, up 96.3 percent from last year.

This big increase occurred because China, in the first half of this year, started buying more North American meat (after trade disputes with Australia), and then Americans started importing more meat from Brazil to meet its demand.

Chile also increased its imports compared to last year: in 2021 it already imported 72 thousand tons, an increase of 23% from 2020, and Egypt, which comes next, reduced its meat purchases by 55% compared to the previous year.

Countries such as the Philippines, in October, ranked fifth among beef import markets, buying 39 thousand tons, 16.5% more than the amount purchased in the same period of 2020.

And the United Arab Emirates ranked sixth in the list, with an increase of 14% in imports, with 38,500 tons. According to the Abrafrigo survey, at least 96 countries increased their meat purchases in 2021.