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China Offers Great Potential for Brazilian Meat Sector

04 March 2015

BRAZIL - The Brazilian meat industry - beef, chicken and pork – is the one sector that has the greatest potential to boost sales to the Chinese market.

According to André Soares, executive the Brazil-China (CEBC) and an author of the study "Trade and Investment Opportunities in China for Selected Sectors" the beef sector could double the value of bilateral trade between the countries.

"The problem is that we have to overcome the bureaucratic issue of qualification measures to be able to export to the country, and increase partnerships in distribution," he said.

"We believe there is great potential in China to leverage our sales, but we have a lot of difficulty to access this market with quality," the director of Government Relations at JBS, Wilson Mello Neto said.

He explained that Brazil is getting access to China via Hong Kong, even at lower prices than China is able to pay.

The executive director of the Brazilian Association of Meat Exporters (Abiec), Fernando Sampaio, said sales of beef to China have been interrupted since 2012, because of the case of atypical mad cow disease in Brazil.

"The official embargo has been lifted, but we are still unable to sell to the country. We are in the negotiations for a new protocol and health certificates to be able to resume exports," he said.

At the time of the import ban, Brazil exported 17,000 tonnes of beef to the country.

In 2014, there were 400,000 tonnes shipped to Hong Kong.

"We had a record revenues of US $ 7.2 billion from foreign sales of beef. A quarter of that went to Hong Kong," said Mr Sampaio.

In a survey conducted by CEBC in conjunction with Apex-Brazil, together with beef, there is market potential for sales of chicken and pork, orange juice and other juices, coffee, cellulose, soy and shoes to China.

"Pork also has a great potential, because of the increase in per capita income in China.

“Today, China imports only two per cent of what is consumed, but that already makes it the world's largest importer of protein," said the manager Apex-Brazil, Costa Sophia.

TheMeatSite News Desk

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