Chinese embargo on Brazilian meatpackers may last longer than expected

China has notified the Ministry of Agriculture of its intention to halt imports from Brazilian meatpacking plants where traces of coronavirus have been identified. In response, the ministry must provide reports detailing the steps taken to prevent additional contamination. As a result, the automatic resumption of activities scheduled for the next seven days does not always occur.

According to Brasilia, the rise of covid-19 in China has put the country’s authorities under strain. As a result, the Chinese embargo on Brazilian meatpackers signals to the population that steps are being taken to combat the rise of infection cases. “There is no technical-scientific basis for China to keep the bans in place,” one analyst adds.

These suspensions are not in place just for meatpackers in Brazil; other countries have also been affected. However, the reality is different in the United States, which lately received hundreds of qualifications in the “pre-listing” system, which allows the country to follow less stringent sanitary criteria and allows calves over 30 months of age to be slaughtered.

See below the track record of Brazilian exports of chicken, pork and beef to China from January 2021 to February 2022. The data are from DataLiner.

Export of chicken (HS 0207), pork (HS 0203), and beef (HS 0202) to China | Jan 2021 – Feb 2022 | WTMT

Source: DataLiner (click here to request a demo)

Some analysts and business leaders feel that achieving a “high-level political understanding” with China would improve Brazil’s condition. However, given the pandemic’s limitations, such as the necessity for quarantine to travel China, an eye-to-eye meeting between Agriculture Minister Marcos Montes and Chinese officials seems unlikely.

Larissa Wachholz, a partner of Vallya Participações and executive director of Flora Capital, recalls that political changes may influence new bans. For example, Ni Yuefeng, the former head of China’s General Customs Administration (GACC), has been named secretary of the Chinese Communist Party’s Hebei Provincial Committee, a higher post than a governor.

She doesn’t believe that the Chinese embargo on Brazilian meatpackers is part of a strategy to lower meat prices. “It is doubtful blocking plants and foreign shipments will reduce prices. The sector is pulverized. Many private companies make the purchase and sale decision,” she told Valor. “It is the health issue that is at the heart of the suspensions.

Source: Valor Econômico

To read the full original article, please go to:

https://valor.globo.com/agronegocios/noticia/2022/05/02/embargo-a-plantas-brasileiras-costuma-durar-mais-do-que-o-previsto.ghtml

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