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.

Makala yanayohusiana

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.

Imeripotiwa na AI

Beijing renewed import licences for hundreds of US beef plants during US President Donald Trump’s visit to meet Chinese leader Xi Jinping. Brazil nears its annual beef export quota to China and is seeking alternative markets.

The average price per kilo of beef reached $31,819 in the last week of April, up 5.4% since January, according to Dane data. This rise occurs amid a debate on exports and price controls pushed by the Government. Year-over-year, the increase is 15.6%.

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Mexico reported nearly 700 New World screwworm cases this month, with 40% in the week ending April 2, according to the USDA. The spread near the border is accelerating, likely extending the suspension of live cattle imports to the United States. Texas faces increased risks of the parasite reaching its herds.

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