Slow down in China’s beef demand hits key suppliers
China’s beef imports are dwindling amid slowing consumption and ample domestic supply, dealing a blow to its biggest supplier, Brazil.
Official data shows the value of China beef imports fell last year for the first time since at least 2016, with prices plunging to the lowest level in almost three years. Import volumes are expected to fall 4pc this year, ending 12 straight years of meteoric rise, according to the US Department of Agriculture.
The predicament highlights the risks in relying heavily on a single customer: China was the destination for more than 52pc of the South American country’s beef sales last year even after halting imports for roughly two months over a case of mad cow disease. While the nation’s meatpackers have sought to diversify their exports, alternatives remain limited.
“Brazil depends a lot on China – if there’s a hiccup in China, it will affect Brazil very badly,” said XP Investimentos analyst Leonardo Alencar.
China’s share in the global meat trade has plunged from a 2020 peak following an increase in domestic meat supplies. The nation is expected to produce 7.7 million metric tons this year, up 1 million tons from 2020, according to the USDA. An economic slowdown has prompted consumers to seek cheaper proteins.
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