China temporarily halts beef imports from three Brazilian plants

On Monday (3), China temporarily suspended beef imports from three Brazilian meatpacking plants, citing “non-compliance” in their facilities. The embargo affects units operated by JBS, Frisa, and Bon-Mart.

Agriculture Minister Carlos Fávaro told Valor that the suspension of these three plants is a “routine business matter” and that it “does not impact trade,” as more than 60 Brazilian facilities continue to export beef to China.

“The Chinese authorities found something they were not satisfied with and requested adjustments. Once these are resolved, trade will resume,” he said. “The companies will implement corrective measures, and we will submit them to China for verification—just as we did when 12 plants that had been suspended under the previous administration regained authorization,” he added.

Mr. Fávaro expressed concern over false reports circulating about the case. He said he received a call from a major cattle rancher asking whether Brazil and China had agreed to reduce exports. President Lula also contacted him during the Carnival holiday to request clarification on the situation.

“I reassured the president, explaining that this was a technical issue,” Mr. Fávaro said. “It doesn’t make sense to suggest an agreement to restrict exports when we have authorized 43 plants under this administration and there is an active list in China for expanding that number, with expectations for more plants to be approved this year,” he concluded.

The minister emphasized that there are no commercial or political disputes between Brazil and China and noted that Brazil stands to gain market share in China due to the ongoing U.S.-China trade war. “It’s clear that this will be an opportunity,” he said.

The chart below shows Brazil’s beef exports to China between January 2021 and January 2024. The data comes from DataLiner.

Beef exports to China | Jan 2021 – Jan 2025 | TEUs

Source: DataLiner (click here to request a demo)

China has also suspended beef imports from companies in Argentina, Uruguay, and Mongolia. Mr. Fávaro highlighted this broader action to dispel any speculation about political motivations behind the measure.

In a letter to the Brazilian embassy in Beijing, the Chinese government said it conducted remote audits on the three facilities and that inspectors “identified non-compliance” in the plants. As a result, China decided to suspend beef imports from these suppliers until they implement corrective actions.

The suspension affects JBS’s plant in Mozarlândia (Goiás), Frisa’s facility in Nanuque (Minas Gerais), and Bon-Mart’s plant in Presidente Prudente (São Paulo), which is operated by Grupo Ramax.

Industry sources reported that one of the reasons cited by China’s General Administration of Customs (GACC) for the suspension was the detection of residues from a cattle tick pesticide in an exported shipment, exceeding acceptable limits.

A meatpacking company that was not affected by the embargo advised its cattle suppliers about the necessary withdrawal period before sending animals treated with the pesticide for slaughter. Companies fear stricter restrictions if additional cases arise.

Chinese authorities also pointed to labeling discrepancies on beef cuts in containers shipped to China, the exposure of products that should have been kept separate in processing areas, and the absence of a veterinarian on the slaughter line. Industry sources described these issues as easily fixable but noted the unusually strict enforcement of audits and suspensions.

When questioned, the Agriculture Ministry did not confirm these details. In a statement, the ministry said the affected companies have already been notified and are implementing corrective measures to comply with Chinese requirements.

Industry expectations are that, once the necessary adjustments are made and communicated to Chinese authorities, exports will resume within 30 days. The Brazilian government has not provided a timeline.

The embargo has reignited discussions about China’s apparent protectionist stance. In December 2024, China launched an investigation into potential safeguard measures against beef imports from all countries. That process is still ongoing.

Brazil, the largest supplier of beef to China, submitted its responses to the investigation’s questionnaire last week. However, industry executives do not believe the current suspensions are linked to the probe, emphasizing that technical issues of this nature are not uncommon.

Soure: Valor International

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