Indonesia gives greenlight to beef imports; China lifts suspensions, say Brazil’s gov’t

Brazil’s Minister of Agriculture and Livestock, Carlos Fávaro, announced on Jan 18 that Indonesia granted authorization for 11 meatpackers to carry out exports into the country. Fávaro also said that there is a possibility of China lifting the suspensions for three other units.

Since 2019, Brazil has not received new export permissions from China. The possibility of lifting the suspension applies to one cattle and two poultry slaughtering companies, whose exports to China have been suspended since 2022. In Indonesia, all new licenses are for cattle plants.

The minister also announced the first market opened by Brazil in 2023: cotton lint to Egypt.

At the end of the meeting, Fávaro highlighted that these achievements are a sign of the return of Brazil’s credibility in the international market.

See below Brazil’s month-on-month beef exports to China from Jan 2019 to Nov 2022. The data is from DataLiner.

Brazil’s beef exports to China | Jan 2019 – Nov 2022 | WTMT

Source: DataLiner (click here to request a demo)

Cotton

Through the official Vegetal Quarantine body, the Egyptian government opened the market for Cotton Lint from Brazil, defining the phytosanitary requirements for importing the product. This was the first market opening registered by Brazil in 2023.

Negotiations to open the market began in 2006 and intensified from 2020 onward, which resulted in the recently-opened market.

According to the minister, this market opening represents recognition of the quality of the Brazilian product. “Who doesn’t want to buy a shirt or a sheet with quality Egyptian cotton? If Brazil is going to export to Egypt, it means that it has quality, credibility, and respect. Receiving this authorization to export to Egypt means that we received the seal of quality of Brazilian cotton for the whole world,” he said.

Egypt imports approximately 120,000 tonnes of cotton lint annually, with the leading suppliers being Greece, Burkina Faso, Benin, and Sudan. Brazil can use a window of opportunity between July and September to export, as Greek exports only start in October. It is estimated that Brazil has the potential to meet, in principle, 20-25% of Egyptian demand.

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