Brazil nears China beef export quota amid tariff risks

Brazil's beef exports to China surged in January 2026, risking exhaustion of the annual quota by September. The government warns that uncontrolled shipments could trigger a domestic price collapse and job losses in the cattle sector. China has set a 55 percent tariff on imports exceeding the quota.

Brazil is on course to exhaust its annual beef export quota to China by September, industry researchers said on Tuesday, as the government warns that uncontrolled shipments could trigger a collapse in domestic prices and jobs in the cattle sector.

If the pace of exports recorded in January is maintained, Brazil will fill its 2026 quota of 1.106 million tonnes well before year end, according to the Centre for Advanced Studies on Applied Economics at the University of Sao Paulo, known as Cepea. In the first month of 2026 alone, Brazil shipped 119,630 tonnes of beef to China, the largest volume ever recorded for January.

China announced that imports exceeding a fixed country quota in 2026 would face a 55 per cent tariff, sharply above the standard 12 per cent rate. The measure applies to Brazil, Argentina, Uruguay and the United States. For Brazil, the ceiling was set at about 1.1 million tonnes. Shipments above that threshold risk becoming commercially unviable.

In an internal letter obtained by the Brazilian newspaper Folha de S. Paulo last week, the Ministry of Agriculture said the absence of a coordinated response could lead to “strong disorganisation of trade flows” and raise the risk of a “collapse in prices and employment” across the beef supply chain. Brasília is weighing export curbs to avert a price slump and job losses.

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Argentine and US officials shake hands sealing trade deal expanding beef exports to 100,000 tons.
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Argentina signs trade agreement with the United States

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Foreign Minister Pablo Quirno announced a trade agreement between Argentina and the United States that expands the beef export quota to 100,000 tons and removes tariff barriers in key sectors. The deal aims to strengthen bilateral economic ties and could boost exports by up to $1,013 million. The agricultural sector, particularly meat exporters, hailed the pact as a major step forward.

As Beijing's tariff approaches, Brazil's exporters are rapidly filling their quota for beef to China, prompting South American industry to seek new buyers. The benchmark price for finished cattle tracked by the University of Sao Paulo's Centre for Advanced Studies on Applied Economics hit R$365 (US$71.57) per arroba (11.5-15kg) on Wednesday, up 12.5 per cent over the past 12 months amid a rush to ship before the quota closes. Daily average shipments reached 10,630 tonnes, 8.6 per cent above March 2025 and 40.7 per cent above the same period in 2024.

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The Ministry of Agriculture and Rural Development identified rises in beef prices in 2026, due to a 14.59% increase in live cattle prices. The government is dialoguing with supply chain actors to implement measures protecting domestic supply and household economies.

China's foreign trade reached 11.84 trillion yuan ($1.63 trillion) in the first quarter of 2026, up 15% year on year, the fastest quarterly growth in nearly five years, officials from the General Administration of Customs announced on Tuesday. Exports totaled 6.85 trillion yuan, up 11.9%, while imports rose 19.6% to 4.99 trillion yuan. The figure marks the first time first-quarter trade has exceeded 11 trillion yuan.

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According to a draft outline of China's 15th Five-Year Plan (2026-2030), the country aims to raise its annual grain production to 1.45 trillion jin (about 725 million tonnes) by 2030. This target addresses increasingly frequent extreme weather events and growing global uncertainties to safeguard food security. China's total grain output in 2025 reached 1.43 trillion jin.

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