Brazil and China: New Opportunities for the Meat Industry

The negotiations and their significance

These negotiations are of great importance for the Brazilian economy. CHINA is the largest market for Brazilian MEAT, accounting for about 14% of chicken exports and almost half of beef supplies. Successful conclusion of the negotiations and approval of new meat processing plants will open up new opportunities for companies such asJBS SA, Minerva SA, Marfrig Global Foods SA and BRF SA. These companies will be able to increase their supply to the Chinese market, which in turn will have a positive impact on their financial performance.

Favaro also stressed the importance of Brazil’s participation in China’s Belt and Road Initiative. This strategic partnership could help the country resist protectionist measures from the United States and the European Union, which have increased pressure on international trade in recent years. However, the idea is controversial within the government of President Luiz Lula da Silva, as some cabinet members express concerns about dependence on China .

Economic outlook

Success in the negotiations could lead to a significant increase in Brazilian meat exports to China. This, in turn, could stimulate the development of the meat industry in Brazil, creating new jobs and increasing tax revenues. However, it is worth noting that the shares of large meat processing companies such as JBS, Minerva and Marfrig have already reacted with a decline in response to this news, indicating uncertainty in the market.

The veterinary approval process for the new plants has already begun, and the results are expected to be known in the coming months. An announcement of new approvals could be made as early as next month during the G20 meeting in Brazil, giving further impetus to the negotiations and raising interest in Brazilian meat on the international stage.

Brazil is on the verge of significant changes in its meat industry. Negotiations with China could be key to the country’s further development as a leading player in the global meat market. Success in these negotiations will not only strengthen Brazil’s economic position, but also create new opportunities for its meat processing companies in the face of global competition.