Brazilian slaughterhouses lose up to US$25 million a day after suspension of sales to China

Published Mar 15, 2023

Tridge summary

Brazilian beef packers are incurring significant losses of between $20 million and $25 million daily following a trade embargo from China, according to agribusiness consultancy Datagro Pecuaria. The embargo, imposed after a case of 'atypical' Bovine Spongiform Encephalopathy (BSE or 'mad cow' disease) was reported in Brazil, has disrupted the country's beef exports to its largest market, China. The exports to China accounted for approximately 62% of Brazil's total fresh beef exports last year, making it the primary supplier to China, ahead of Argentina and Uruguay. The lift of the embargo depends on China's approval, while the Brazilian government is actively seeking to expedite the process, particularly with President Luiz Inacio Lula da Silva's upcoming state visit to China.

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Original content

By Ana Mano SAO PAULO (Reuters) - Brazilian beef packers are losing between $20 million and $25 million a day after a trade embargo halted sales to China, agribusiness consultancy Datagro Pecuaria said. The estimate is based on current beef export prices ranging between $4,800 and $5,000 a tonne, data sent to Reuters on Wednesday showed. Brazil voluntarily suspended beef sales to China on February 23 after reporting a case of Bovine Spongiform Encephalopathy (BSE), known as mad cow disease, in compliance with health protocols. A subsequent investigation deemed the case "atypical", meaning that Brazil has retained its negligible BSE risk status and may resume exports to China. Lifting the ban, however, depends on formal approval from Beijing. Brazilian authorities said that all relevant information about the mad cow case has been shared with China. The government now plans to persuade Beijing to lift the ban before or during a state visit by President Luiz Inacio Lula da Silva to ...

Source: NoticiasAgricolas