Brazilian beef gains market share in the US with Chinese demand for American beef

Troubled trade relations between China and Australia have led the Chinese to seek more beef in the US market, opening space for Brazil to increase its protein exports to the US. This generates a movement for qualification by North America of new Brazilian slaughterhouses throughout the country.

The scenario already benefits industry giants such as JBS, Marfrig, and Minerva Foods, as they all have plants approved for shipping to the US.

But these companies have had their eyes on the possibility of capturing a larger share in the North American country.

In May, the USA reached third place among the main buyers of Brazilian beef according to data from ABIEC (the Brazilian association of exporters), with an increase of 186% in the volume purchased, to 10,730tons; this represents a jump of 5 positions since the same month of 2020.

Below is a history of Brazilian beef exports to the United States:

Brazilian Beef Export (HS 0202) to the United States | Jan 2020 to May 2021 | WTMT

Graph source: DataLiner  (To request a DataLiner demo, click here)

“JBS has 12 units authorized to export to the US and is always on the lookout for expansion possibilities,” the company said in a note to Reuters.

Last week, Marfrig received a recommendation from the Ministry of Agriculture for its Chupinguaia (RO) unit to export to the North American market. Now, this plant and the one in Alegrete (RS), recommended by the ministry’s authorities in May, are awaiting approval from the American authorities to confirm the qualification.

Through its press office, Marfrig said that it already ships fresh and processed meat through four units: Bagé and São Gabriel, in Rio Grande do Sul, Bataguassu (MS), and Promissão (SP).

Also, last week, Minerva announced that its processed meats division, Minerva Fine Foods, was authorized to export cooked and frozen products to the United States through the Barretos (SP) plant, the company’s only processed meat operation in Brazil.

The unit joined five other Minerva Foods plants that can ship beef protein to the North Americans, four of which are for shipping fresh beef and one that exports the canned product.

Although companies are looking to expand the range of possibilities to export to the US, shipments are already strong with current qualifications.

In the accumulated result for the first five months of the year, Brazilian slaughterhouses increased the volume of protein exported to the North Americans by 165.6%, to 33,800 tons, according to ABIEC.

Data from the United States Department of Agriculture (USDA), in turn, show that the country sold 48,292 tons of beef to China from January to April, an extreme increase compared to the volume of 3,255 tons shipped in the same period of 2020.

Source: Money Times

To read the full original article, visit the link: https://www.moneytimes.com.br/carne-do-brasil-ganha-espaco-nos-eua-com-demanda-chinesa-pelo-produto-americano/

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