Brazil sees China-led beef bonanza

▶ Meat industry looks to open up more Asian markets

Brazilian exporters are poised to sell record volumes of beef for two consecutive years, driven by strong demand from China, Abiec, an association of more than 30 Brazilian meat-packing companies, said Tuesday.

Brazil will export an estimated 1.626 million tons of beef in 2018, the highest volume in history, Abiec said. Next year, the figure may be a new record of 1.8 million tons, Abiec President Antonio Camardelli said at a news conference.

“China is and will remain the main export destination,” Camardelli said.

China has imported 44 percent of Brazil’s beef so far in the year, according to an Abiec presentation.

China’s beef imports from Brazil, not including orders from Hong Kong, are expected to rise to 431,000 tons in 2019, up from a forecast 328,000 at year-end, Camardelli said.

Next year, beef exports will generate revenues of $7.26 billion, according to Abiec, up from an estimated $6.54 billion in 2018.

The rosy outlook for beef packers in Brazil reflects the expectation of resilient Asian demand and the possibility of finding new export destinations.

Brazil is lobbying countries including Japan, South Korea, Canada, Mexico, and Indonesia to open up their beef markets.

These countries could potentially buy an additional 300,000 tons from Brazil in a given year. The combined value of potential beef sales to these countries and regions would be worth about $1.7 billion, Camardelli said.

“Japan could open up for Brazilian beef after authorizing imports from Uruguay, which has an identical sanitary status as Brazil,” Camardelli said.

“Indonesia is expected to authorize Brazilian beef imports in 2019,” Camardelli said.

The US, which halted Brazilian fresh beef imports in June over safety issues, may soon resume purchases as Brazil has addressed the concerns that were raised.

Currently, 16 Brazilian plants are authorized to export beef to China, Abiec said.

A recent delegation from China bound for Brazil is likely to increase the number of authorized purveyors, Camardelli said, without providing details on that number.