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While Brazilians eagerly await the reopening of China's beef import market, Argentine neighbors celebrate the return, this Monday (4/10), of shipments of their red protein to the Asian giant.
Last Tuesday (28/9), the Argentine government said that local slaughterhouses will be able to sell beef to the Chinese market again, lifting a limit imposed at the beginning of this year and which fueled strong tensions with the meat and meat production sectors. of grains.
“Regarding the issue of beef destined for China, we will restart exports from Monday”, highlighted the Minister of Agriculture, Livestock and Fisheries of Argentina, Julian Dominguez, after meeting with leaders of four main agricultural associations in the country , according to the Reuters Agency.
The Argentine government had limited beef shipments to 50% of normal volumes, a controversial measure that sought to contain the rapid increase in domestic protein prices, which resulted in protests by farmers, producers and agricultural entities, who threatened to interrupt the local livestock and grain trade.
This decision to reopen occurred in the wake of the results of the Argentine elections, held on September 12th.
Dominguez took over as agriculture minister earlier this month after the government of center-left President Alberto Fernandez badly lost a primary election to Congress, triggering a split in the ruling Peronist party and a cabinet reshuffle, Reuters reports .
Analysts say China mainly buys a cut of beef that is not popular in the Argentine domestic market.
Argentina is the fifth largest beef exporter in the world, while China is the world's largest beef consumer.
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Due to previous restrictions on Argentine beef exports, the country's export volumes fell by 33% in August compared with the previous month, according to data from China's Meat International Group.
According to an analysis by the Australian portal Beef Central, the temporary departure of South American suppliers (Brazil and Argentina) left a large gap in the supply of beef imported from China.
China accounted for 76% of Argentina's beef exports between January and August this year.
In the year to August/21, Argentina accounted for 21% of Chinese beef imports, second only to the largest exporter, Brazil, which held a share of 38% in the same period of comparison.
Almost four weeks have passed since the voluntary suspension imposed by the Brazilian government (in accordance with a bilateral agreement between the two governments) on beef shipments to China, following the confirmation, on September 4, of two atypical cases of mad cow disease (Bovine Spongiform Encephalopathy). – BSE, its acronym in English) in Brazil (in Minas Gerais and Mato Grosso).
Many livestock sector analysts predicted a resumption of trade to China after fifteen days of suspension, based on events that occurred the last time the country reported a case of BSE, in 2019, in Mato Grosso.
China meat trade analysts are concerned about the current trade standoff between Brazil and China, consultants say.
“At present, due to expected supply shortages, imported beef prices continue to rise,” China-based Meat International Group said. “Brazil’s temporary suspension on September 4 may cause greater uncertainty for futures market supply,” the group added.
Per: Denis Cardoso | Source: DBO Portal
