Brazil is “unlikely” to be cut out of China’s beef market for long, following a confirmed case of BSE, Bord Bia has said.
The food board’s beef and livestock sector manager Joe Burke suggested that past experience and Brazil’s importance as a beef supplier to China indicate access could again be granted in the short term.
In September 2021, the last time a case of BSE was identified in Brazil, the large beef player’s exports to China were suspended until only mid-December of that year.
Ireland faced a similar closure of the Chinese market when a case of atypical BSE was identified here, in May 2020. However, Ireland’s ban lasted longer, until January 2023.
In 2022, Brazil exported 1.238m tonnes of beef to China, half of its total exports of 2.264m tonnes.
Exports were suspended on Thursday following the confirmation of a case of atypical BSE in a cow from a farm in Pará, a northern state in Brazil.
Outlook
Burke described the BSE suspension as “potentially significant for the Chinese beef market” as Brazil accounted for more than 40% of total beef imports to the large Asian market in 2022.
“In the short term, it is likely that Chinese buyers will reach out to other suppliers, including Uruguay, Argentina, Australia and New Zealand.
“Ireland is also in a position to respond to any uplift in Chinese demand for beef, having regained access to this market in early January,” he said.
Burke highlighted that Bord Bia has a full relaunch plan in place for the arrival of Irish beef in China, incorporating trades seminars, engagement with chefs, PR and advertising, as well as a Government-led trade mission in May.
Irish beef shipments are en route to China currently and are expected to arrive before the end of March.
Competition
However, the Bord Bia beef and livestock sector manager said that while the Chinese suspension is ongoing, it is “expected that Brazilian beef exports will be more competitive in other markets”, including other Asian countries such as Hong Kong and the Philippines.
Burke also suggested Brazilian beef will be now more competitive in the USA, Middle East, north Africa and Europe.
“This side effect could dampen any direct benefit that Irish beef exports experience in China,” he said.
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