China Launches Probe into Beef Imports Amid Domestic Industry Struggles

China has initiated a probe into beef imports to determine if the surge in shipments from overseas has adversely affected the domestic industry, according to the Ministry of Commerce.

The investigation, requested by domestic industry associations, is expected to conclude within eight months but may be extended under special circumstances.

As the world’s largest beef buyer, any safeguard measures taken by China could impact major exporters such as Brazil, Argentina, and Australia. Following the announcement, shares of Brazil’s leading meat packers, including JBS SA, Marfrig Global Foods SA, and Minerva SA, experienced declines.

The surge in imports between 2019 and mid-2024 has significantly impacted the domestic industry, with groups representing the animal husbandry sector from several top-producing regions highlighting the challenges. China’s beef producers are facing substantial losses as local prices have plummeted to multi-year lows due to oversupply and sluggish consumption.

In October, Brazil imposed new tariffs on various products from China and other Asian nations, including increased duties on fibre optics and cables, as well as iron and steel products. The news led to a drop in shares of JBS by as much as 2.9% in Sao Paulo, while Marfrig tumbled 7.5% and Minerva fell 3.1%. China remains the largest market for Brazilian and Argentine beef and the fourth-largest for the US.

Original story by Irish Independent