Chinese beef importers attempt to renegotiate prices of Brazil and Uruguay exports

According to a report published in Brazil’s Folha de S. Paulo, some Chinese beef importers are trying to renegotiate previously agreed prices for meat that has already arrived in China from Brazilian and Uruguayan exporters.

Uruguay’s farmers’ associations has complained that the discounts would total about $ 60 million and would lead to a drop in cattle prices.

The report also states that some Brazilian plants recently authorized to export to China are facing financial difficulties as a result of requests for renegotiation. In these cases, the Brazilian companies invested in new infrastructure in order to be granted export status but are not being paid. China dramatically increased beef imports in 2019, after the African swine flu virus decimated much of its pig population, prompting the country to seek alternative protein.

The following graph, made with DataLiner data, shows Brazilian meat exports from January 2015 to November 2019:

Chart source: DataLiner / Datamar

According to the report, some Brazilian beef exporters are trying to reroute cargoes that have not yet arrived in China to other destinations, such as Iran.

Source: Reuters

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