Daily losses from Chinese meat embargo exceed US$ 10 million

Livestock in Mato Grosso is losing US$ 4.4 million per business day, with the continuation of the Chinese embargo on Brazilian beef, according to calculations by IMAC (the Mato Grosso Institute of Meat). The organization estimates that the loss so far exceeds US$ 60 million and could reach almost US$ 90 million by the end of October if the protein is not transferred to other markets. The total daily loss for Brazil is estimated at US$ 10.4 million per business day in recent weeks”, says the operations director at IMAC, Bruno de Jesus Andrade. The impact is also being felt along the protein chain, especially feedlots that need to sell processed cattle.

“The suspension is causing losses not only to the industry. In the field, the arroba do boi has already fallen by around 20%.

See below a history of Brazilian exports of beef and pork to China from 2019. Data are from DataLiner:

Brazilian Exports of Beef and Pork (HS 0202 and 0203) to China | Jan 2019 to Aug 2021 | WTMT

Source: DataLiner (To request a DataLiner demo click here)

According to Andrade, the end consumer may take a little longer to feel the drop in prices. “Arroba do boi and wholesale meat are already being negotiated at lower values. It may take longer for the devaluation to be noticed on the supermarket shelves”, he concludes.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/agronegocios/noticia/2021/10/22/perdas-diarias-com-embargo-chines-a-carne-superam-us-10-milhoes.ghtml

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