China has lost Brazil as its great supplier of beef

Published 2023년 2월 27일

Tridge summary

Brazil's temporary ban on beef exports to China, following a mad cow disease outbreak, has sparked anticipation for Argentina and Uruguay to fill the market gap. However, the success of these countries depends on China's willingness to pay higher prices for meat. As China relies heavily on Brazil for beef, the suspension is expected to affect its first half results. Meanwhile, Australia is also positioning itself to benefit from the situation, despite its beef being consumed in a different market segment. The duration and specifics of the ban remain uncertain, with tests pending to determine the type of mad cow disease.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

With Brazil, the leading supplier, out of this market for a month in principle, will there be new opportunities for Argentina? It will depend on how long this scenario lasts and what Asians are willing to pay. To put the idea to order, China has exploded as an exclusive buyer of beef globally for about a decade. It is basically supplied in Brazil (40% of the total), Argentina (18%) and Uruguay (15%) as major suppliers. The giant accounts for 75-77% of our country's beef exports and is equally key for the other two members of Mercosur. In this context, the news that Brazil would be out of the Chinese market for about four weeks is generating repercussions on both sides of the Rio de la Plata, where commercial opportunities are glimpsed. Brazil got into trouble after a case of mad cow was detected in the northern state of Paris. It should be remembered that China and Brazil signed a protocol whereby, in cases like this, meat sales must stop for at least four weeks. This implies that ...

Source: Chacra Magazine