China’s Limited Beef Options Imply Brazil Ban Will Be Brief
· Australian ands Argentine exports are subject to restrictions
· Brazil’s exports to China should resume shortly, Marfrig says
By Jasmine Ng, Bloomberg
September 6, 2021
China’s beef supply options are shrinking after the latest move by Brazil to halt exports there following the discovery of two cases of mad cow disease.
The temporary suspension by Brazil comes as China’s two mainstay suppliers, Argentina and Australia, have seen reduced access into the world’s biggest imported beef market this year. Argentina is limiting beef exports until Oct. 31 to contain inflation, while Australian beef is subject to trade restrictions imposed by China amid frosty relations between the two countries.
This suggests the temporary ban on Brazilian beef exports is unlikely to be dragged out. The fact that the two cases of mad cow disease were “atypical” in nature also means the suspension will probably be a “short-term issue,” said Rabobank analyst Chenjun Pan. An atypical case is rare and happens spontaneously, as opposed to classical cases caused by contaminated feed.
The latest measure went into effect Saturday and was declared in compliance with health protocols between Brazil and China. Beijing is set to decide...
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