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US tariffs likely to redirect Brazilian beef exports to Asian markets

A decline in beef sales to the United States could have a significant impact on Brazilian meatpacking plants. The country is the second-largest destination for Brazilian beef, behind only China. According to the Ministry of Agriculture, the United States accounts for 12% of Brazil's exports, while the Chinese absorb approximately 48%.

Photo: Disclosure/OPR Archive

With the trade barrier caused by the 50% surcharge on Brazilian products imposed by the US government, which is expected to come into effect on August 1, the expectation is that meatpacking plants will focus even more on the Asian market.

The situation, however, also has consequences for the United States itself. American consumers are facing record beef inflation, driven by a historic reduction in the local herd. The result has been a surge in beef prices, currently costing twice as much as in Brazil, which has boosted imports in recent months.

Despite Brazil's importance in exports, the main supplier of beef to the US is Australia. The two countries, however, operate in different niches: while Australia supplies North American supermarkets directly, Brazil primarily supplies meat destined for the processed food industry.

Until now, Brazilian beef had stood out as the cheapest on the foreign market. However, with the

Photo: Disclosure/Anffa Sindical

Due to a reduction in sales to the United States, meatpacking plants should avoid allocating this surplus to the domestic market. The strategy will be to maintain a focus on exports, redirecting shipments to other countries to avoid negative impacts on domestic prices.

Brazil currently exports beef to over 100 countries. The opening of an office by the Brazilian Meat Industry Association (ABIEC) in China has expanded Brazil's presence in the Asian market. A recent reflection of this expansion was the resumption of purchases by Vietnam, which has resumed importing beef from Brazil.

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