Brazilian meatpackers suspicious of forthcoming export regulations to China

With little time left before the Minister of Agriculture Carlos Fávaro to China, Brazilian meatpackers received the information that the process of selecting companies to receive export qualification may soon change. Instead of a list sorted in chronological order, which gives preference to the companies waiting for Beijings’ authorization the longest, Brazil may opt for presenting the group of approximately 120 companies as a whole, regardless of the period they applied for the export permit.

Although the feared alteration isn’t yet official, according to the Valor press agency, the idea provoked the discontentment of many in the industry. The companies gathered last week in Brasilia to learn about the new rules and complained about a supposed lack of transparency from the government, and demanded accountability from the Ministry to indicate which companies have been seeking entry into the Chinese market for longer.

Their main concern is that non-chronological criteria for accreditation may leave loopholes for lobbying and tainting the selection of companies licensed to export, which can make life difficult for small and medium-sized companies that await in the queues. The final decision, though, is solely in China’s hands. Still, on the other end of the spectrum, some claim that the new format could make room for mass accreditation, which would, in turn, benefit the national scene.

See below Brazil’s beef exports in containers to all destinations from Jan 2019 – Jan 2023. The data is from DataLiner.

Brazilian beef exports | Jan 2019 – Jan 2023 | WTMT

Source: DataLiner (click here to request a demo)

Waiting time

China has not granted a new export license to Brazilian meatpackers since 2019 when 38 companies received hard-fought permission. In 2020, the system for accrediting production units changed. Documents previously sent to Beijing on paper or a pen drive are now uploaded to a single online platform.

The Ministry of Agriculture split the enrolled companies into different groups and, in 2021, sent four lists to China, with 79 meatpackers active in the beef, pork, and poultry markets. Out of these, 50 produce beef. It isn’t clear whether the change in the criteria applied comes from Brasilia’s or Beijing’s initiative.

Sources say industry and government struck a deal last year that would ensure respect for the chronological order. However, due to the newest updates, the lists previously defined and already sent to the GACC may no longer be considered.

Last week, specialists from the Ministry of Agriculture met with meat processing representatives to make a recommendation for reviewing the necessary documentation for obtaining a qualification by China and solving any lingering problems that there might be. Companies that have already submitted documents should know they may need to update or submit new information to remain qualified.

Minister Carlos Fávaro and the Ministry entourage are leaving for Beijing today, March 20, where they will discuss the issue with the Chinese government while also pushing for the reopening of the beef market. According to reports, the exports told the meeting participants that the lists were made in another context and that they “no longer apply.” The Ministry of Agriculture did not respond to comment.

Source: Valor Econômico

To read the original news report, please see: https://valor.globo.com/agronegocios/noticia/2023/03/20/frigorificos-temem-novo-acesso-a-china.ghtml

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