Brazil negotiates Turkish market access for beef exports

Brazil is in final negotiations with Turkish authorities to secure access to Turkey’s market for Brazilian beef. Initially, Brazil is expected to agree to a reduced quota of 4,000 to 5,000 tonnes with zero tariff and the requirement for sanitary tests on the cargo, according to sources familiar with the matter.

This strategy aims to gain an initial foothold in Turkey, where beef prices have soared. In 2023, beef prices in Turkey surged by 200%, leading to a 30% reduction in consumption as consumers shifted to chicken.

Recent talks have finalized technical and sanitary requirements for the deal. Turkish authorities are mandating testing for bovine spongiform encephalopathy (BSE), commonly known as mad cow disease, despite Brazil being classified as a country with “negligible risk” for the disease by the World Organisation for Animal Health (WOAH).

Brazilian officials have accepted this condition as part of their strategy to finalize market access and pursue future expansion. Initial proposals for a 10,000-tonne quota were halved during negotiations.

The Brazilian beef sector sees significant potential in the Turkish market, with the capacity to export up to 300,000 tonnes annually once fully established. If realized, Turkey could become the second-largest destination for Brazilian beef after China, which imports over 1 million tonnes annually.

Turkey remains one of the few major markets closed to Brazilian beef, alongside Japan, Vietnam, and South Korea. Inflationary pressures in Turkey have heightened the likelihood of market opening, though historically, Turkey has imported small volumes of beef.

“The first step is gaining market access. The second is removing the testing requirement after proving the product’s safety. Then, we need to increase the quota and negotiate tariffs,” a source told Valor.

One key concern is Turkey’s current tariff on imported beef, set at 225%, effectively barring Brazilian exports. While the initial quota will be exempt from tariffs, any quota expansion is likely to involve some level of taxation.

Export sector representatives believe a tariff of up to 20% could still make Brazilian beef competitive in Turkey’s retail market. Ongoing negotiations suggest the tariff could settle around 12%.

Brazil aims to replicate its recent success in Morocco, which authorized a quota of 20,000 tonnes of Brazilian beef, lamb, goat, and camel meat exempt from value-added tax (VAT). In Morocco, frozen beef imports are typically taxed at up to 200%.

In exchange, Brazil opened its market to Moroccan tangerines. Following the agreement, Morocco’s 2025 budget law allocated funds to double the quota to 40,000 tonnes.

Turkey already imports live cattle from Brazil and is its largest trading partner in this category, purchasing 368,000 head of cattle worth nearly $300 million in 2023.

By Rafael Walendorff

Source: Valor International

Original reporting available at: https://valorinternational.globo.com/agribusiness/news/2025/01/09/brazil-negotiates-turkish-market-access-for-beef-exports.ghtml

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