China to soon approve 20 Brazilian slaughterhouses for export

China is expected to approve about 20 Brazilian slaughterhouses to export meat to the country by the end of this month, three senior industry sources said. According to two of them, Brazilian authorities expect the decision to be made by Saturday (3). The third source said the country is likely to wait for the end of the Chinese New Year, which runs from February 10-17.

According to the Ministry of Agriculture, China has inspected 44 farms in the last two months. In the queue are plants owned by companies that already export to China through other units, and companies that may be making their debut in the market.

“The expectation is that about 20 [plants] will be approved, most of them cattle, audited in person in December and online this month,” said an industry source.

Alcides Torres, owner of Scot Consultoria, said that the new authorizations tend to prevent an increase in the price of the tonne exported to China and, consequently, the arroba (a metric unit equal to 15 kilos) of live cattle that supplies the Chinese market. However, the accreditation of slaughterhouses in the interior of the country could increase the prices paid for “China steers” in these regions in times of limited supply.

The opening of the Chinese market to more companies could also have an important impact on the eventual consolidation of the sector. This is because exporting companies tend to become economically stronger because they are paid in dollars, thus distancing themselves from those that only serve the domestic market. “For the Chinese, who also have the problem of having few suppliers, it’s a positive factor,” said Mr. Torres.

In a recent interview, the Secretary of Trade and International Relations at the Ministry of Agriculture, Roberto Perosa, said that if half of the plants inspected were approved, it would be a record. China has already sent the technical reports of the inspections to the Brazilian government and the inspected companies for corrections. “The audit is meant to point out the smallest details so that they can be corrected,” he said.

On the Brazilian side, there are high expectations for progress in bilateral relations with China, which will be 50 years old in 2024. Brazil’s Vice President Geraldo Alckmin will visit Beijing in the middle of the year and the Chinese President, Xi Jinping, will come to Brazil for the G20 meetings.

Brazil is organizing a review of the health protocol for mad cow disease. The intention is to prevent the interruption of beef trade when atypical cases of the disease are detected that do not pose health risks, as happened in 2023.

Source: Valor International 

Click here to read the original version of the text: https://valorinternational.globo.com/agribusiness/news/2024/02/02/china-to-approve-20-slaughterhouses-this-month.ghtml

Sharing is caring!