Brazilian beef producers may benefit from an increase in imports by China, which are expected to see two-digit growth until 2018, according to an analysis from Netherland’s bank Rabobank.
“Total imports will increase by between 15 and 20 percent per year over the next few years, which will make China the most important global destination in the near future,” the report said adding that the “increase in imports will tend to favour Brazil and the United States, which are the largest beef producers.”
The bank noted that China had become a large importer of beef in 2013, buying 297,000 tons or 3.79 times more than in 2012.
According to the document cited by Reuters, the lack of beef cattle in China is a structural issue and local industry faces many challenges and “is behind other large world producers in all key ways such as genetics, breeding, productivity, management and sources of pasture/feed.”
Rabobank also forecasts that China will allow total access to its market by beef from Brazil in the next few months and by US beef by the end of the year.
The main destination for Brazil’s beef in the first quarter of 2014 was Hong Kong, which bought almost 16 percent more year on year or 92,770 tons. (macauhub/BR/CN)