Brazil: Meatpackers turn to neighbor countries to serve China

Published 2023년 2월 24일

Tridge summary

Two out of three major meat packers in Brazil, Minerva and Marfrig, are redirecting Chinese beef orders to Argentina and Uruguay following a voluntary suspension of Brazilian beef exports by the Ministry of Agriculture due to a potential case of 'mad cow' disease. The decision to suspend exports is part of a bilateral agreement with China, and Beijing has not set a deadline for the resumption of exports. The suspension has caused economic disruption in the production chain. Atypical cases of the disease, which do not pose a risk to humans or other cattle, are spontaneously occurring in old animals. The Association of Breeders of Mato Grosso is calling for a review of the bilateral agreement, arguing that it leads to unnecessary export suspensions.

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

Original content

Two of the three meat packers listed on B3 announced yesterday that they are redirecting Chinese beef orders to their plants in Argentina and Uruguay. The effort is to mitigate the damage caused by the self-suspension of Brazilian exports in the sales of these companies and throughout the chain. Due to the possible atypical case of “mad cow”, the Ministry of Agriculture voluntarily suspended protein shipments yesterday, as provided for in the agreement with China. Now it's 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. Largest exporter of beef in South America, Minerva informed that it will meet demand from China from its three plants in Uruguay and its unit in Argentina. With this, the company – which in 2022 recorded record revenue of BRL 31 billion – hopes to maintain its share of the Chinese market. Marfrig is going to export to China from its six ...

Source: Beefpoint