The Brazilian federal government is set to discuss a proposal from the Ministry of Agriculture regarding the establishment of export quotas for companies exporting beef to China. This proposal aims to regulate the flow of exports and prevent what the government perceives as a 'wild rush' as companies attempt to capitalize on the lucrative market. After China imposed a 55% tariff on beef imports outside the quota last year, the Ministry is striving to maintain order in the market amid concerns of oversupply and market disruption.

Luis Rua, the secretary of Commerce and International Relations, expressed that the Ministry is collaborating with the private sector in exploring ways to implement these quotas effectively. The goal is to avert a chaotic export scenario where all companies attempt to export large quantities of beef under the same quota, which could lead to disorganization within Brazil's beef market. The Ministry has submitted a request for evaluation to the Executive Management Committee (Gecex) to address the situation and formulate a coherent strategy going forward.

Looking ahead, Brazil's beef export quota to China for 2026, without including the tariff, stands at just over 1 million tonnes. This figure reflects Brazil's ambition to solidify its position as a leading beef exporter while navigating the complexities of international trade regulations and market demands. The discussions on quotas are crucial to ensuring that Brazil can maintain its competitive edge and meet the demands of its primary export market sustainably and efficiently.