Brazil diversifies its beef exports under Chinese quotas
At the beginning of 2026, the Brazilian meat industry demonstrated strong growth, recording revenues of $2.865 billion in the first two months, up 39% year-on-year.
This growth, driven by market diversification toward the United States, the European Union, and Russia, suggests the sector will be able to overcome the restrictions imposed by trade protection measures in China, its main buyer.
Strategic Diversification in the Face of Chinese Barriers
While China retains its leading position with purchases of $1.221 billion (up 36%), its relative share of total exports declined slightly to 42.6%.
Growth in other areas is crucial:
- United States: Strengthened its position as the second-largest market, increasing raw meat revenues by 97.3% due to a domestic supply shortage.
- Russia: demonstrated one of the most aggressive growth rates, doubling import volumes (+106.6%).
- European Union: value increased by 24.6% after ratifying the trade agreement with Mercosur.
Cycle Change and Supply Forecast
The Brazilian Association of Meat Processors (ABRAFRIGO) indicates that the livestock sector is experiencing a cycle change, characterized by the retention of young cattle and an increase in the value of breeding animals. A decrease in domestic livestock supply, combined with the opening of strategic markets such as Japan and South Korea, will maintain upward pressure on international prices.
Despite the logistical risks associated with conflicts in the Middle East, their impact on the overall balance is limited, as this region accounts for only 8.5% of current exports. This trend indicates that global demand will offset any reduction in duty-free quotas in the Chinese market.
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