In this file:
· Mexico sees bigger Chinese demand for its beef on coronavirus concerns
· Chinese orders of Brazil meat stall on coronavirus outbreak
Mexico sees bigger Chinese demand for its beef on coronavirus concerns
David Alire Garcia, Reuters
February 6, 2020
MEXICO CITY (Reuters) - China’s appetite for Mexican steaks and other cuts of beef is expected to increase more than 40% this year, in part due to disruptions caused by the coronavirus outbreak, according to Mexico’s top cattle association.
Chinese buyers represent only about 4% of Mexico’s foreign beef sales but the Asian market has been a steady source of growth, especially since most shipments inn the past have gone to just Hong Kong. More than 80% of total Mexican beef exports go to U.S. customers.
The spread of coronavirus has fanned concerns about domestic food security in China, amid widespread belief that the virus originated last year in a food market selling illegal wildlife in the city of Wuhan, the capital of China’s Hubei province.
Authorities have locked down the province, within one of China’s main food-producing hubs, in an effort to contain the epidemic. Travel restrictions have curbed the movement of animals and feed, and curtailed output at feed mills and slaughterhouses.
Rogelio Perez, the top trade official for Mexican cattle growers association AMEG, which forecasts future industry sales, estimated the sales resulting from the impact of the virus could amount to a third of the overall 40% sales growth.
Perez, in an interview late on Wednesday, said China’s domestic beef producers have been especially hard hit by the disruption caused by the flu-like coronavirus, which has killed more than 500 people.
He said China’s demand would benefit the two Mexican companies that have permits to export to China, SuKarne and Grupo Gusi. Forty-two other Mexican firms are awaiting approvals.
“It’s a benefit for Mexico in the sense that this allows us to grow our exports faster,” said Perez...
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Chinese orders of Brazil meat stall on coronavirus outbreak
By: Tatiana Freitas, Bloomberg
via American Journal of Transportation - Feb 07 2020
Negotiations for new orders of Brazilian meat by Chinese buyers have been on hold since the Lunar New Year break, clouding the outlook for demand in the world’s top food buyer as the coronavirus spread.
Chinese importers had been renegotiating beef contracts with South American exporters. But those talks came to halt on Jan. 25 and haven’t resumed, according to people with knowledge of the matter, who asked not to be named because talks are private. Shipments of Brazilian beef purchased previously haven’t been affected, they said.
It’s a similar story for chicken and pork, according to Ricardo Santin, head of industry group ABPA. New orders and negotiations have slowed significantly during the extended holiday, while shipments are running normally, although some delays are expected due to measures to limit the spread of the disease, he said.
Brazil is home to some of the world’s biggest meat companies such as JBS SA and Minerva SA, whose shares dropped more than 3% on Friday as they head toward a third straight week of losses.
Brazilian meat processors expect to get greater clarity...