Brazil's government warns of potential price and employment collapse in the beef sector due to China's import safeguards and advocates for export quotas.
The Brazilian government, under President Luiz Inácio Lula da Silva, has expressed concerns about a potential crisis in the beef sector, predicting significant price and employment declines as a result of new import safeguards imposed by China. The Ministry of Agriculture and Livestock (Mapa) has proposed creating an export quota system to regulate the amount of beef that can be exported to China, which is a crucial market for Brazilian exporters such as JBS, Minerva, and Marfrig.
In late December, China's Ministry of Commerce announced a steep 55% tariff on beef imports from Brazil, Argentina, Uruguay, and the United States that exceed specified limits. For Brazil, the export quota for 2026 is set at approximately 1.1 million tons. Exports that surpass this quota will be subject to the hefty tariff, significantly undermining the competitiveness of Brazilian beef in the global market.
This situation not only highlights the challenges facing Brazil's beef industry but also raises concerns about the livelihoods of farmers and workers within the sector. If the proposed measures to establish export quotas are not implemented quickly, the Brazilian beef market could face severe repercussions, potentially leading to widespread job losses and economic instability in beef-dependent regions.
