Brazil attempts to anticipate return of beef exports to China

Brazil’s Minister of Agriculture, Carlos Fávaro, arrives this Wednesday (22/03) in China, the leading trading partner for Brazilian agribusiness, with the expectation of obtaining authorization for Brazil to resume beef sales to the Asian country and securing new export permits for local meatpackers.

The minister also expects progress in negotiations to make electronic certifications valid for agricultural export to China. Also, among the ministerial trip’s goals is the continuation of talks to open the Chinese market for sesame, sorghum, and grapes produced in Brazil, as well as the restart of negotiations for a phytosanitary agreement that would allow the export of rice from Brazil to China.

Everything suggests that the Chinese authorities will announce the lifting of the embargo on beef exports from Brazil later this week, says a source. The suspension will complete one month this Thursday, March 23. The measure was adopted to comply with the sanitary protocol signed between the two countries that make the interruption of shipments mandatory in cases of atypical mad cow disease cases, with no pre-established date for the return of activities.

With no new export qualifications since 2019, expectations are growing that China will authorize more Brazilian meat processing facilities to export beef, pork, and chicken there.

Brazil has 83 establishments eligible to receive approval from China, according to a source. Members of the government entourage even believe in the possibility of a mass qualification wave. Currently, around 100 Brazilian companies export meat to China. In 2022, 2.2 million tonnes were exported, in deals worth US$ 10.4 billion, according to the Ministry of Agriculture’s Agrostat data panel.

See below Brazil’s exports of beef to China between Jan 2019 and Jan 2023, according to the DataLiner platform.

Beef exports to China | Jan 2019 – Jan 2023 | WTMT

Source: DataLiner (click here to request a demo)

Fávaro’s team should also push forward the negotiations with the technical authorities in China so that electronic certifications of exporting establishments and agricultural products sent there from Brazil can be accepted.

If implemented, digitization could mean reducing bureaucracy, as well as a relevant diplomatic step, highlighted Larissa Wachholz, partner at Vallya Participações and former coordinator of the China Nucleus of the Ministry of Agriculture during the management of former minister Tereza Cristina. “It is a long-term vision in this partnership, of commitment, of a potential increase in the number of products bought by China from Brazil. It’s a big vote of confidence in our products.”

A recurrent point of attention in the Brazilian relationship with China, the diversification of the export basket is another item that will be addressed in bilateral talks. Recently, Brazil had a critical win- the opening of the Chinese market for Brazilian corn. The Chinese also endorsed the entry of soymeal, concentrated soy protein, citrus pulp, and fetal bovine whey. Agreements for sesame, sorghum, and grapes remain on the radar.

See below Brazil’s export volume of corn recorded between Jan 2022 and Jan 2023. The data is from DataLiner.

Corn exports to China | Jan 2022 – Jan 2023 | WTMT

Source: DataLiner (click here to request a demo)

In the case of grapes, a Chinese audit visit to production areas in Bahia’s Sao Francisco Valley is planned for the coming months. Only after this process should the market opening protocol be signed.

Fávaro’s agenda includes meetings with the ministers of Agriculture and the General Administration of Customs of China (GACC) on Thursday (23) and Friday (24). Next week, the minister will accompany the presidential delegation to other meetings in Beijing.

Source: Valor Econômico

To read the original news article, please visit: https://valor.globo.com/agronegocios/noticia/2023/03/22/brasil-tenta-retomar-as-vendas-de-carne-a-china.ghtml

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