By Waldaniel Amadis | 2023-07-20

SÃO PAULO -- Brazil's meat exports fell in the first half of 2023, as China imposed restrictions on the country.

The Brazilian Association of Meat Exporting Industries (ABIEC), the main employer in the meat export sector, July 10 reported that exports totaled $4.87 billion between January and June, down 21.4% from the first half of 2022.

The semi-annual volume of 1.02 million tons was down 3.8% during the same period.

The decline in exports stemmed from China's decision earlier this year to impound several shipments of Brazilian meat after cases of bovine spongiform encephalopathy (BSE), or "mad cow" disease, were found in the Amazonian state of Pará (north).

Brazilian authorities, responding to Chinese concerns, began voluntarily halting exports of beef to China February 23. However, the matter dragged on for weeks, as the Chinese impounded containers that arrived even before then and held on to them for a month or more.

Chinese health protocols immediately block these products, even before the authorities of the country of origin have concluded internal investigations.

While the Brazilian Ministry of Agriculture and Livestock was conducting internal investigations, 70,000 tons of Brazilian meat was held up in Chinese ports.

China was the main destination for Brazilian meat exports in the first half of 2023, accounting for 53% of the total value and 50% of the total volume.

Even though China is the main destination for Brazilian meat exports, its purchases fell by 29% in terms of billing and 5% in terms of volume in the first half of 2023.

Delay in lifting blockade

An ABIEC member told Entorno that Brazilian meat industry representatives are concerned that China's "sanitary blockade" is not being lifted as quickly as it was imposed.

"In this specific case, it was clear that the shipment occurred on dates that did not coincide with the outbreak. However, the authorities blocked the cargo and delayed releasing it, damaging an entire production and logistics chain," the anonymous source said.

The World Organization for Animal Health (WOAH) confirmed the diagnosis of an "isolated and atypical case" of mad cow disease in Brazil in March, a month after it was detected.

China was in no hurry to normalize its imports of Brazilian meat, even though the WOAH confirmed that the case posed no risk to the Brazilian production chain.

On March 23, China decided to resume purchasing meat from Brazil, as reported by the Brazilian newspaper Folha de São Paulo.

The impact of the situation with China had a negative effect on the performance of the export sector during the first six months of 2023. Nonetheless, several key importers, including Europe, México, Canadá, and Chile, increased their imports of Brazilian meat.

In 2022, Brazil maintained its position as the world's leading producer of meat, while China remained its top trade partner.

That year, Brazil accounted for approximately 20% of global meat production.