Brazil seeks clarity on China beef quota rules
In-transit shipments raise industry concerns
The Brazilian government still does not know whether beef in transit to China will be considered part of the new import quotas that were announced by Beijing last week, Reuters reported, citing a government official on Tuesday.
Herlon Brandao, head of the statistics department of Brazil's trade ministry, said the volumes of Brazilian beef in transit, based on available information, would represent "a small" amount in relation to the roughly 1.5 million metric tons of beef that the South American country exported to China last year.
China has imposed an additional 55% tariff on beef imports that exceed quota levels from key suppliers, including Brazil, Australia and the US, as part of a move to protect its domestic beef industry.
Brazil's beef sector is worried about the uncertainty surrounding the rules.
"Chinese authorities have made it clear that the volume will be calculated based on actual entries into the country from January 1, 2026, regardless of previously signed contracts, cargo in transit, or products already shipped," Sindifrigo-Mato Grosso, a beef trade lobby in Brazil's Mato Grosso state, said in a statement on Tuesday.
The group added that if this "interpretation is confirmed without any revision," Brazil will have to deduct approximately 350,000 tons from its assigned 2026 quota, which is the volume it estimates of cargos held in Chinese ports awaiting customs clearance, on ships in transit, or stockpiled at Brazilian ports.
Brazil's Agriculture Ministry did not have an immediate comment regarding the concerns expressed by the country's beef industry. Around 53% of Brazil's beef exports went to China in 2025, bringing in $8.8 billion in revenue, according to fresh trade data.
China has set the new import quota for Brazilian beef at 1.106 million tons for 2026. It will gradually rise to 1.128 million tons in 2027 and 1.151 million tons in 2028, according to Beijing's announcement.