Brazil is exporting more beef in the US market
Trade data shows that Brazil is constantly increasing beef shipments to the US. Behind this awkward situation stand a trade dispute between China and Australia (7 large units have lost their permits for beef exports to China) and increased demand for US beef in the Chinese market. In fact, since May, the US has replaced Australia as the fifth-Largest supplier in China.
In the five months to May, Brazilian beef shipments to the U.S. market rose 165.6% to 33,800 tonnes, according to Brazilian beef lobby Abiec. Exports surged 186% in May alone, making the United States the third biggest foreign buyer of Brazilian beef, reports Reuters.
Data from the US Department of Agriculture show the United States sold 48,292 tonnes of beef to China from January to April, up sharply from 3,255 tonnes in the same period of 2020.
"We expect the U.S. will direct part of its meat to China to offset the reduction in exports from Australia to that country," said Lygia Pimentel, director of agribusiness consultancy Agrifatto. "With this, Brazil ends up gaining space in the U.S. market."
Brazil's pork export to the United States may also benefit from the trend, she said for Reuters.
JBS has 12 units authorized to export to the United States and is looking at ways to expand that trade. Last week, Brazil's Agriculture Ministry cleared a Marfrig plant in Rondonia state for exports to the United States. That unit and another one in Rio Grande do Sul are now awaiting approval from US authorities to begin exporting. Marfrig said it already exports fresh and processed beef to the United States from four plants in Brazil. Minerva was authorized last week to export cooked and frozen products to the US market from a facility in Sao Paulo state, the company's sixth plant cleared for beef exports to the United States.
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