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Rabobank: Chinese Beef Demand Continues To Benefit Brazil

Rabobank pointed out in its latest report that China's demand for beef will continue to be strong in 2019, and Brazil and other beef-producing countries will benefit from the Sino-US trade conflict.

Brazil's "Economic Value" reported on September 4 that China is the world's largest consumer of pork, but the recent outbreak of African swine fever. The Dutch cooperative bank pointed out that if the epidemic continues to spread, it is expected that China will increase imports of other meats, such as beef, next year.

Although China's beef prices are almost three times that of pork, China's demand for beef is still large. Compared with the same period in 2017, China's beef imports in the first half of this year increased by 40%. In addition, China continues to develop new meat import markets. In the past few months, Ireland, the Netherlands, Denmark, France and the United Kingdom have been allowed to export frozen meat to the Chinese market. In addition, more than 9,000 Angus cattle have arrived from Uruguay in the near future. China.

China is the largest importer of Brazilian beef. From January to August this year, the amount of Brazilian beef imported from the Chinese mainland increased by 44% year-on-year, and the Brazilian beef imported from Hong Kong increased by 18%.

The Dutch cooperative bank pointed out that after the decline in June, the export volume of Brazilian beef increased sharply in July, and the export volume in the first eight months of this year increased by 8%. In addition, the agency said that beef consumption in Brazil's domestic market will increase by 2% this year, up from 1% last year.

The bank also pointed out that Japan began to allow Argentine fresh beef to enter the domestic market. This decision is a positive signal for Brazil, and Brazil is also actively promoting entry into the Japanese market.

The Dutch cooperative bank also said that because the amount of beef exported from the United States to China is not large, the Sino-US trade conflict will not have much impact on US beef exports, but it will put pressure on US pork exports and curb US pork prices.


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