Brazilian meatpackers halt output as China beef quota nears limit

Brazilian meatpackers in several states are preparing to place employees at some plants on mandatory leave from July, as they anticipate the imminent exhaustion of China’s annual tariff-rate quota for beef imports from Brazil.

it is still late June, exporters believe the quota is close to being filled because China calculates the limit based on what arrives at its ports during the calendar year. For the 2026 quota, for example, cargoes that left Brazil in late 2025 and reached China only in early 2026 were counted.

According to the latest data released by the Chinese government, as of June 23 Brazil had filled 65.4% of its quota through May. Executives broadly expect Chinese importers to return to the Brazilian market only in October, since volumes shipped from Brazil in the final months of the year would reach China only in early 2027.

According to Datamar data, Brazil exported 33,618 TEUs of chilled and frozen beef to China in the first four months of 2026, up 13% from a year earlier. Datamar also shows that most of those shipments were routed through the Port of Santos, which accounted for 58.70% of the total. The chart below shows the share held by the other ports:

Top Ports – Beef | China |  Jan-Apr 2026 | TEUs

Source: DataLiner (click here to request a demo)

Frigol gives employees 18 days off

Frigol, one of Brazil’s five largest beef companies, will place nearly 1,000 employees at its Água Azul do Norte plant in Pará on 18 days of mandatory leave starting July 1. The facility used to send 70% of its production to China, CEO Luciano Pascon told Valor. At other plants, the company will cut slaughtering by about 20%, but does not plan mandatory leave.

Pascon expects operations to remain 30% to 40% lower even after employees return. “We can’t place all the production that China used to take in other foreign markets or in Brazil,” he said.

Better Beef redirects production

Better Beef, which owns two cattle slaughtering plants in São Paulo State, will halt production at one of them, in Araçatuba, from July 20 to August 10, said commercial manager Sandro Batista. The company plans to use its Rancharia plant, which normally sends 80% to 85% of its output to China, to supply the domestic market and other countries, such as the United States, Chile and Middle Eastern nations. The Brazilian market is usually served by the Araçatuba unit.

The company, which generated about R$3 billion in revenue last year, had expected to grow by around 10% in 2026. With the Chinese restriction, however, it is now working with the prospect of matching its 2025 performance, Batista said.

Iguatemi Beef, based in Mato Grosso do Sul, will also place about 650 of the 850 employees at its plant in the municipality of Iguatemi on mandatory leave in July. The facility exports 90% to 95% of the beef it produces, with 80% going to China.

Reducing slaughter will help manage costs at a time of weaker demand and cattle prices considered high, said export director Douglas Domingues. The company has built up inventories to increase sales from July to other markets, including the United States, the Middle East, the United Kingdom and Brazil. “All of this is already happening; meat is sold in advance,” Domingues said.

The list of companies granting collective vacations because of the Chinese quota also includes Plena Alimentos, which will adopt the measure for 21 business days for 1,500 employees at its plants in Goiás and Tocantins. Astra Foods, based in Cruzeiro do Oeste, Paraná, is betting on supplying its regional market with the beef it will no longer export to China over the next three months, said Bruno Cunha, export sales manager.

Room to maneuver

Among the country’s largest meat companies, the diversification of destinations and meat lines, as well as operations in several countries, is expected to soften the impact of China’s quota.

At Minerva Foods, plants in Brazil are expected to keep producing to supply the U.S. market, which continues to show demand for Brazilian beef, while units in Argentina, Uruguay and Colombia will continue serving China, according to a source familiar with the operation.

A little over a week ago, Friboi CEO Renato Costa, whose company is controlled by JBS, said the company would stop producing specific cuts for China from the 20th. Contacted by Valor, JBS did not say whether it would also place some employees on mandatory leave. MBRF and Minerva also declined to comment when asked by Valor.

Source: Valor International