Brazilian meat exporters turn to neighboring countries to supply China
Due to the possible atypical case of "mad cow", the Ministry of Agriculture voluntarily suspended protein shipments, as provided for in the agreement with China. It is now up to Beijing to give the green light for the resumption of business, and there is no deadline for that. In 2019 there were 13 days of waiting. In 2021, more than 100 days.
The main exporter of beef in South America, Minerva reported that it will meet the demand from China from its three plants in Uruguay and its unit in Argentina. With this, the company, which in 2022 registered record revenues of R$ 31 billion (1 BRL = 0,18 EUR), hopes to maintain its share in the Chinese market. Marfrig will export to China from its six units in the two neighboring countries.
China, the main destination for Brazilian beef, accounts for about 60% of the country's exports. Brazil was also China's top beef supplier last year, ahead of Argentina and Uruguay, which could boost their exports to China while Brazil remains on the sidelines. The same could happen to Australia if talks accelerate to ease Beijing's restrictions on Australian meat.
The export suspension is a blow to some of the world's top meatpackers, including JBS SA, Marfrig Global Foods and Minerva SA.
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