The confirmation by the US of the 40% surtax on Brazilian beef ended up impacting Brazil’s latest deals with China. The new rate—unless there are last-minute negotiations that modify it—will come into force in the coming hours. Although the Brazilian industry has a strategy not to oversupply production during the first week of this new configuration for the global beef trade, prices have fallen.

Prices for rump & loin Hilton deals showed almost no changes last week. Argentine market sources reported deals in a range of US$/t 17,000–17,300 FOB for more regular business, with supply still limited.

Far from showing any activity after the confirmation of the increased tariff on Brazilian beef, the US import market was “completely frozen” last week, according to a trader who regularly operates in this market. He said this is because several buyers interpreted that the entry into force of the tariff —starting August 6— might leave room for some sort of reversal of the measure imposed by President Donald Trump. In fact, in Brazil, there are agents who say that negotiation is not closed (see Brazil section).

According to a trader, beef stocks in Chile are “quite high” ahead of the September national holiday season. The source cited references for the 19 cuts from Brazil in a range of US$/t 5,800–6,000 CFR, while Paraguay is in a range of US$/t 6,200–6,300.

A regional trader reported sales from Uruguay to MENA destinations at US$/t 5,600 for lamb carcasses, and from Argentina for adult sheep in 6 cuts at US$/t 4,700 CFR.

The average value of the slaughter steer in Mercosur fell by 1 cent during the week to US$ 3.86 per kilo carcass weight, because of the sharp drop in the dollar reference price in Argentina.

Gilberto Tomazoni, global CEO of JBS, said there is still a possibility that Brazilian beef could be excluded from the new 50% tariff imposed by the US. According to the executive, negotiations between the two countries are ongoing and may result in an agreement that removes the product from the measure.

At Minerva’s request, Brazil’s Administrative Council for Economic Defense (CADE) has asked the Saudi fund Salic for information regarding its shareholding in BRF, Marfrig, and Minerva Foods.

Marfrig reported that the new 50% tariff imposed by the US on Brazilian beef will not have a significant impact on the company.

According to BTG Pactual, although Brazil’s exposure to the US market is generally limited, products such as beef, ethanol, sugar and coffee, which were not exempted, will suffer the most direct impact.

This Tuesday (August 5), with 78.39% of the votes, BRF shareholders approved in an Extraordinary General Meeting (EGM) the merger with Marfrig, giving rise to MBRF, one of the largest global food companies, present in more than 100 countries, with over 130,000 employees and a production capacity of approximately 8 million tons per year, the two companies said in a joint press release. Some hours later Marfrig shareholders also approved the merger.

As anticipated at the beginning of last week, slaughter cattle prices have reversed the downward trend of the previous five weeks.

The average price of the finished male in Brazil’s main cattle-producing states rose R$/@ 3.6 over the week to R$ 282.7, according to Scot Consulting’s references, free of the Funrural tax and with 30-day payment terms.

The average export value of Uruguayan beef in July was US$/t 7,053, according to export request data from Customs. This is the first time since mid-2022 that the average value has surpassed US$ 7,000 per shipment ton, when record prices were reached driven by Chinese demand.

Export volumes in the last two months showed a bias in main destinations, with a drop in the United States compensated by growth in shipments to China.

In the 12 months to July, Uruguay shipped 47,198 tons of beef to EU member countries, according to export request data from Customs. This is the largest 12-month volume since 2010.

Uruguayan live cattle exports continue at a strong pace. In July, according to export permit data reported by Customs, 16,824 tons were exported for a total value of US$ 53.6 million.

Uruguayan meat packers had loans totaling US$ 438 million with banks at the end of June, the highest in at least seven years, according to data published by the Central Bank of Uruguay (BCU). In June last year, meat packers’ bank liabilities stood at US$ 309 million, marking a year-on-year increase of 42% (US$ 129 million).

China’s General Administration of Customs has agreed to conduct virtual audits of Uruguayan plants that are still not authorized to export beef stomachs to that country, reported the Monitor Ganadero portal.

The slaughter cattle market remains firm, although demand positioning is mixed. The supply of grassfed animals, as is always the case at this time of year, is limited, especially considering the very fluid flow to slaughter plants in recent months.

The activity of the meatpacking industry focused on steers and heifers, many of them destined for the European Quota 481 for the last quarter of the year, while there was a notable drop in cow slaughter. According to INAC data, in the week ending August 2, 47,034 cattle were processed, 3,897 fewer than the previous week and 384 more than in the same period last year.

The sheep market is in high demand. Kosher teams are returning to work with the species, sustaining strong demand for heavy carcass animals, both lambs and adults.

Just two months after becoming the largest slaughter group in the country, the Lequio group will implement rotating suspensions with reduced working hours and wage cuts at Carnes Pampeanas, the largest meatpacking plant in the province of La Pampa, according to provincial media. This is an emergency agreement signed with the union and endorsed by the provincial Labor Department to avoid layoffs.

The Argentine government last week published in the Official Gazette the cut in export taxes on grains and steer beef announced by President Javier Milei the previous Saturday during the main event of the Palermo Rural Exhibition. With this change, soybeans are taxed at 26%, cereals at 9.5%, and steer and poultry meat at 5%, among other modifications.

Export steer prices have maintained the rise that followed immediately after the announcement of a 1.75% cut in export taxes on steer beef. Crossbred steers of better meat quality are trading at around AR$ 5,450 to 5,650 per kilo dressed weight.

After having clearly performed above last year’s level during the first quarter, cattle slaughter at Paraguay’s exporting plants is now slightly below that of the previous year.

Paraguayan beef exports are on the rise in 2025. According to Senacsa data, from January to July, 215,749 tons were shipped at an average value of US$/t 5,728, marking a 12% year-on-year increase in volume and an 18% increase in average value.

Cattle prices continued their upward trend this week. Industry sources reported a price range of US$ 4.10–4.15 per kilo carcass weight for standard males and US$ 3.85 for fat cows.

The US government will investigate Chinese interest in Brazil’s agribusiness sector, according to the annual intelligence budget bill, currently under review in the US Senate. Lawmakers are concerned about investments from the world’s second-largest economy in Brazil and the close ties between Chinese authorities and Brazil, Valor reported.

Pilgrim’s Pride, the company controlled by JBS, reported a 16% increase in net profit in the second quarter, with net revenue of US$ 4.75 billion (up 4.3%) and Ebitda of US$ 687 million, exceeding market expectations (between US$ 630 and 640 million).

Fed cattle prices moved higher last week despite the downturn in futures. In the south, most early trades at US$/cwt 235 shifted to 236, while in the north live trade rose from US$/cwt 245 to 247.

Compared to the previous market test, US beef import prices moved sharply higher on limited trading activity. Trading was slow to moderate, but moderate to good demand continued to provide price support.

As part of the “Support to Livestock for Rural Prosperity” project established in Turkey, it was announced that the price of pregnant heifers of beef breeds was set at 105,000 Turkish liras per animal (over US$ 2,500), excluding VAT, according to Turkish media.

Australia exported 150,435 tons of beef during July, another record for the country, just behind the prior one achieved in June.

Beef Central said that Australian beef exports had never previously exceeded 130,000t before October last year, but have continued to surge since then. Last month’s record tonnage was 16pc higher than July last year – which itself was an all-time record at the time, of just short of 130,000t.

Record export volumes are being achieved with far fewer cattle than in prior records set in 2014-15, when the processing industry was at full pace due to drought liquidation and prior records.

A key feature about the current record export trend is that it is not dependent on any one customer, but rather, substantial growth in all four largest Australian customers (US, Japan, Korea, China) as well as progress in smaller customers like Indonesia and Canada, said Beef Central.

The Bureau of Meteorology’s August to October 2025 long-range forecast tips above average rainfall for most of mainland Australia. The Bureau says above average rainfall is likely to very likely (60% to greater than 80% chance) for most of mainland Australia, apart from the west and far south-east, Beef Central reported.

Korean meat industry entrepreneurs have staged a protest in front of the US Embassy in Seoul to express their rejection of the trade agreement reached by their country with the Trump administration, which could lead to a greater volume of US beef imports, as it would allow beef from animals over 30 months of age at the time of slaughter.