Several Brazilian beef exporters will begin granting collective vacations and reducing operations at some plants from July onward as China’s annual quota of 1.106 million tons of beef eligible for the preferential 12% tariff nears exhaustion. The industry expects Chinese importers to resume purchases only in October, for shipments that will arrive in China in 2027.
According to a survey published by Globo Rural, companies including Frigol, Better Beef, Iguatemi Beef, and Plena Alimentos have already announced temporary slaughter and production cuts. Frigol will grant 18 days of collective leave to around 1,000 employees at its Água Azul do Norte plant (Pará), which had been shipping 70% of its production to China, while reducing slaughter by about 20% at other facilities. Better Beef will idle its Araçatuba plant (São Paulo) from July 20 to August 10 and redirect production from its Rancharia facility to the domestic market and destinations such as the United States, Chile, and the Middle East.
Iguatemi Beef will also temporarily suspend operations at its Mato Grosso do Sul plant, granting leave to 650 of its 850 employees. The company exports between 90% and 95% of its production, with 80% destined for China, and plans to increase sales to the United States, the United Kingdom, the Middle East, and the domestic market.
Plena Alimentos will implement a similar measure, granting 21 business days of collective leave to 1,500 workers at its plants in Goiás and Tocantins.
The largest processors, with more diversified geographic operations, expect a more limited impact. Minerva Foods will continue supplying China from its operations in Argentina, Uruguay, and Colombia, while its Brazilian plants will focus on the US market. JBS had already announced it would suspend production of cuts destined specifically for China from June 20, although it has not confirmed whether it will also implement collective vacations. MBRF and Minerva declined to comment on any potential labor measures.
