End of Chinese veto on Brazilian beef: understand the impasse of the last 3 months

The Ministry of Agriculture confirmed this Wednesday (15) the end of the embargo on Brazilian beef by China.

There are still no details on the Chinese government’s decision, but the folder guaranteed that exports to the Asian country – the main market for Brazilian meat – have returned to normal.

The stoppage had been going on since September 4, when the Ministry of Agriculture interrupted the shipments, following sanitary protocols, after identifying two cases of “mad cows” in the country.

Even with proof by the Brazilian government that the situation was normalized shortly afterwards, China did not allow the entry of the protein into the country. Since then, the government has been negotiating the release of exports.

Analysts interviewed by CNN link the delay in the release to the “bargaining power” of China, interested in controlling prices.

According to secretaries interviewed by CNN this morning, in front of the Ministry building, the negotiations were “totally technical”, since China has sanitary protocols that are different from those in Brazil.

According to them, still, from a financial point of view, there is no great damage to local producers with these almost four months of interruption in exports. It is noteworthy that shipments to the Asian country correspond in values ​​to half of what Brazil exports protein to the world.

The secretaries also said that, over the last few months, the domestic market has consumed a lot of meat, as has the American government, for which Brazilian exports of the protein have risen by almost 200%. This is despite the fact that the Brazilian Association of Meat Shops (Abrafrigo) says that Brazilian beef exports dropped 43% in October.

Sources interviewed by CNN analyst Gustavo Uribe also say that the main reason that leads China to resume negotiations with Brazil is now linked to the Chinese New Year, in February. At the event, a large amount of beef is consumed.

For the ministry, the news “confirms the quality of Brazilian meat”, and brings relief to producers, whose goods will now be authenticated and certified to be shipped to China.

* Posted by Ligia Tuon

Reference: CNN Brasil

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