Editor: Rafael Tardáguila
rafael@tardaguila.com.uy
China is demanding more and more value-added products, said Allison Navarro of Marfrig and BRF during the Sial fair in Shanghai. According to the exporter, the Chinese market “is evolving year by year” and is incorporating new types of products.
“Five years ago, the business was much more about commodities. This morning I spoke with a client, and we discussed grainfed, grassfed — and in the case of grainfed animals, the client wanted to know how many days they had been on feed: 120, 150, 200 days,” he said. He stressed that these types of conversations “didn’t happen five years ago, and now they are common.”
At this year’s Sial fair, Brazil’s stands aren’t packed with people, “but the clients who are here are regulars, key customers buying beef, chicken, and pork.”
Today, with the recent merger with BRF, Marfrig is a company offering all three proteins, so the customer base is broad.
Navarro said he has no doubt that the U.S.–China trade war — despite the recent pause — is opening up commercial opportunities for high-value products from both Uruguay and Brazil. “These are high-value products that are already generating opportunities,” he noted.
He added that, based on China’s typical annual demand pattern, the second half of the year is always more intense, as importers stock up ahead of Chinese New Year. “They buy for arrival mainly in November and December, to process and have it available for the celebrations,” he explained.
China is not the only Asian country where meat consumption is becoming more sophisticated. Navarro said the same trend is occurring in Southeast Asian countries, where Brazil has significantly expanded its presence. “These are markets that have grown both for value-added beef (high-value grainfed cuts) and for processing beef, such as blocks for hamburgers.”
He also sees “a huge opportunity for growth in the Middle East.” He mentioned that Marfrig BRF has a plant in the region where they produce under the Sadia brand, “and now we’re starting with Uruguay and Argentina, supplying beef for restaurants and foodservice.”
According to Navarro, “this beef for premium gastronomy competes directly with U.S. and Australian offerings.”
