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24

2023

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02

Two Top Brazil Beefpackers to Keep Supplying China Despite Mad Cow-related Ban

Source:

Reuters

Two top Brazilian meatpackers said on Thursday they will be able to continue supplying China with beef despite the world's largest beef exporting country's self-imposed ban due to a confirmed case of mad cow disease.

 

Two top Brazilian meatpackers said on Thursday they will be able to continue supplying China with beef despite the world's largest beef exporting country's self-imposed ban due to a confirmed case of mad cow disease.

 

Minerva SA and Marfrig said in separate statements they would use facilities in Argentina and Uruguay to offset the impact of Brazil's ban, which was triggered by a bilateral sanitary agreement enforced in 2015. In its statement, Marfrig said it would use six plants in Argentina and Uruguay to supply the Chinese market. Minerva said it would use four plants in the same two countries while Brazil's ban remained in force.

 

Of the listed meat companies affected by the ban, Minerva should be the most affected, followed by Marfrig and JBS, according to Santander analysts. Minerva has the highest relative exposure to Brazil, with 36% of its 12-month revenues originated in Brazil compared with 30% for Marfrig in South America and 15% for JBS in Brazil, Santander said.

 

Brazil's case of Bovine Spongiform Encephalopathy was discovered in a 9-year-old male animal in the country's northern Para state. Tests are pending to determine if this is an atypical case of mad cow or classic case, which could spark wider trade bans. Brazilian authorities said there was a high probability of this being an "atypical" case.