Brazil's meatpacking industry has submitted a proposal to the government to distribute the 2027 beef export quota to China among eligible companies, using a mechanism similar to the one applied to administer the European Union's Hilton quota, based on export history.
The initiative aims to replace the first come, first served allocation system, which triggered a rush to bring shipments forward and resulted in Brazil's 2026 quota of 1.106 million tons being exhausted several months before the end of the year.
The industry had already proposed allocating the 2026 quota among exporting companies based on their trade history earlier this year. However, the mechanism was never implemented, and the first come, first served system remained in place, with the consequences the industry had warned about.
For 2027, Brazil will have a quota of 1.128 million tons subject to a 12% tariff. Volumes exceeding that limit will face an additional 55% tariff.
The proposed mechanism provides for individual allocations based on each company's export history. From 2027 onwards, a rolling average of export volumes over the previous two years would be used. The proposal also includes minimum allocations of 8,000 tons per company, a reserve for new exporters, and mechanisms to redistribute unused volumes.
Abiec president Roberto Perosa warned in September that, if the current system remains in place, Brazil's 2027 quota could be exhausted as early as March. The association aims to prevent another concentration of shipments that could distort prices and hamper the industry's commercial planning.
The proposal will be evaluated by Brazil's Foreign Trade Chamber (Camex), which has yet to determine the quota administration mechanism for 2027.
