Chinese beef buyers expect Brazil’s trade to resume soon despite mad cow cases

BEIJING, Sept 6 (Reuters) – Chinese beef importers said on Monday that the suspension of exports by the main Brazilian supplier due to two cases of mad cow disease has had no immediate impact on the market , and some are still buying in anticipation of a rapid resumption of trade.

Brazil said on Saturday it had confirmed two cases of “atypical” mad cow disease in different states and suspended beef exports to China as part of a previous deal on the issue with its main buyer. Read more

Despite Brazil’s dominant share of 40% of beef imports from China, prices had not moved on Monday and some importers were still looking for deals.

“We continue to buy, factories need to maintain their stocks,” said Grace Gao, general manager of the Dalian Goldrich International-based importer.

In Brazil, fourth-beef processor Frigol said Monday it would direct workers at one of its plants for 15 days, with a source familiar with the matter who told Reuters that the measure was in response to the suspension of exports.

Frigol’s press office said the avenues were due to a seasonal slowdown in Israeli demand and did not want to comment on a possible connection to China’s exports. The company did not immediately give details on how many were razed

The “atypical” mad cow is considered to have a lower risk than the classic form of the disease, as it occurs naturally and only sporadically in older cattle.

“Classic” mad cow disease, or BSE, is transmitted by contaminated feed and has been linked to the variant of Creutzfeldt-Jakob disease in humans.

Brazil previously suspended exports for 10 days in 2019 after denouncing an “atypical” case.

“I guess the Chinese government will not ban imports,” said Pan Chenjun, a senior analyst at Rabobank. “Brazil is so important.”

The Chinese customs authority did not immediately respond to a request for comment.

Brazil has shipped more than 500,000 tons of beef to China from January to July this year, or 38% of total imports from China, according to Chinese customs data, placing it well ahead of the supplier. number 2, Argentina, which supplied just under 300,000 tons.

The global supply of beef is very low and prices are already at record levels, added another major Chinese beef buyer.

“If this only lasts 15 days, there will be no impact. Brazil continues to produce, and it takes two months to send meat here anyway,” he added, who was no longer identified because he is not allowed to speak to the media. communication.

Although pork imports from China are declining due to the recovery in domestic supply, Chinese demand for beef continues to grow.

Ireland, a smaller beef supplier in China, reported a case of “atypical” mad cow disease in May last year. It has not yet been able to resume exports.

Reports by Dominique Patton in Beijing and Nayara Figueiredo in Sao Paulo; Edited by Richard Pullin

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