Race to export beef to China drives cattle price to record high

The accelerated pace of filling the export quota of beef for China, at a time of restricted supply of animals for slaughter, caused the price of fattened cattle to reach a historical nominal record. On Wednesday (April 8), the Cepea/Esalq indicator for fattened cattle, a benchmark for the market, reached R$ 365 per arroba, an increase of 2.53% in the month. Over 12 months, the appreciation is 12.5%. The demand for cattle is heated because slaughterhouses are racing to expand exports to China, Brazil's main customer, while there is still space in the quota with a reduced tariff. As a result, the industry expects the quota to be fully filled by May. Since the beginning of the year, China has imposed safeguards on beef imports from different suppliers and established a quota of 1.1 million tons for Brazil, with a tariff of 12%. Outside the quota, the rate is 55%. Roberto Perosa, president of the Brazilian Association of Meat Exporting Industries (Abiec), said yesterday that Brazil ...