JBS stopped producing specific beef cuts for the Chinese market on June 20 in order to avoid having new shipments arrive after China’s import quota has been exhausted. The decision was confirmed by Renato Costa, CEO of Friboi, during the International Agribusiness Forum (Fiap) held in Campo Grande.
According to Costa, the company will focus on completing already scheduled shipments and preventing products from becoming subject to significantly higher tariffs. Beef imported within the quota currently faces a 12% tariff, while volumes exceeding the quota are subject to a total tariff rate of 67%.
Costa said the industry expects Brazilian exports to remain within the quota through the end of June. However, the large volume of product already in transit has led both packers and importers to adopt a more cautious approach in negotiations.
The executive, who also chairs the board of Abiec, said the impact of the measure will depend on each company's exposure to the Chinese market. In JBS’s case, he said no reduction in sales volumes is expected, although he acknowledged that future prices will depend on market conditions.
He also ruled out the possibility of an expansion of the quota this year, but noted that the Brazilian industry and government have requested that China reallocate any unused quota volumes from other exporting countries.
Source: Canal Rural
