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Trade War Creates Opportunity for Brazilian Meat

04/03/2018 - 12h03

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FROM SÃO PAULO

The trade war between the United States and China has opened up an opportunity for Brazilian exporters of pork meat, according to the ABPA (Brazilian Association of Animal Protein). Asian countries are the largest consumers of pork meat in the world: 56 million tons per year. Brazilian consumption is 3 million tons per year.

After the President of the United States, Donald Trump, initiated a trade war with China, Beijing responded by increasing importation taxes on 128 products. The surcharges vary from 15% to 25%. American pork has been surcharged at the maximum rate.

ABPA's Vice-President and Markets Director, Ricardo Santin, sees an opportunity for 11 Brazilian companies that are well organized and positioned to export to China.

Ricardo doesn't believe that exportation procedures and processes will necessarily generate immediate contracts, but that the overall scenario for Brazilian exporters is now more advantageous.

The Chinese imported 275 million tons of meat from the USA in 2017, which generated revenues of US$ 488 million. During the same period, Brazil exported 48.9 million tons to China, with revenue of US$ 100.6 million.

The Chinese had already started importing more Brazilian meat. This due to a surplus generated by a Russian embargo on Brazilian production which has been in vigor since last November.

The Russian restriction was imposed after the presence of the additive Ractopamine which was found in several shipments sent from Brazil, an accusation that the national industry denies. Both Russia and China require that pork meat be free from this additive.

Translated by LLOYD HARDER

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