Beef: demand from the USA, EU and Middle East alleviates quota from China, says entity

Demand for beef exports from Brazil remains strong, with important advances in shipments to the United States, the European Union, Chile and Russia. This movement should allow the largest global exporter to better face the restrictive sales quota to China, the Brazilian Association of Refrigerators (Abrafrigo) said this Friday.

“The good pace of sales at the beginning of the year is a strong indication that the safeguard measures imposed by China on beef imports should have a reduced impact on Brazil this year”, stated the entity in a note, in reference to the restrictions of the largest global importer.

The war in the Middle East, depending on its duration and developments, could be a damaging factor for Brazilian exports in 2026, due to increased logistics costs, Abrafrigo added.

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According to the association, however, the meat sector, faced with increased demand, has been able to redirect shipments and operate via alternative routes that bypass the Strait of Hormuz to serve countries in the Middle East, a region directly impacted by the conflict.

Abrafrigo cited that the United States, the second largest market for Brazilian beef, needs to import 2.5 million tons in 2026, according to data from the North American Department of Agriculture (USDA). This high volume occurs amid a cycle of decline in the herd, which reduces the supply of meat in the US domestic market.

Furthermore, other markets such as Chile, Russia, Egypt, United Arab Emirates, Mexico and Saudi Arabia also showed “significant growth” in imports of Brazilian beef in the first two months of the year, said the entity.

There are also “good prospects” for consolidation and the opening of new markets, such as Vietnam, Indonesia, Japan and South Korea, “which should contribute to keeping the demand for Brazilian beef in the international market strong”.

According to Abrafrigo, even in a scenario in which Brazil exhausts its share of China’s quota — 1.1 million tons exempt from the highest tariff of 55% —, “the tendency is for increased demand in other markets and restrictions on the supply side to maintain strong demand for animals to meet this year’s beef exports.”

In the first two months, sales of fresh and processed meat — including offal and other bovine by-products — increased 39% in revenue, to US$ 2.865 billion, while shipped volumes grew 22%, to 557.24 thousand tons, according to data from Abrafrigo.

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In the USA alone, sales of fresh beef grew 97.3% in the first two months, to US$ 379 million, while the volume shipped rose 60%, to 63.08 thousand tons.

Sales to the European Union of fresh beef increased by 24.6% in revenue, to US$ 121.4 million, and 18.8% in volume, to 14.17 thousand tons, the entity reported.

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