Brazil expected to reach beef export quota to China in August, and price of fat cattle falls

China is the main buyer of Brazilian beef, seeking to stimulate internal production and reduce dependence on imports.

Brazil approaches the limit of the Chinese quota, and meatpackers reduce purchase of cattle Brazil is expected to reach, in August, the annual limit for beef exports to China, according to the Mato Grosso Breeders Association (Acrimat). Because of this, ranchers state that meatpackers have already started to reduce the purchase of cattle for slaughter. This limit defines how much each country can sell of beef to China annually without having to pay a surcharge. In the case of Brazil, the annual quota is 1.1 million tons. Within the quota, the tariff is 12%; above that, it jumps to 55%. With this policy, China, the main buyer of Brazilian beef, seeks to stimulate internal production and reduce dependence on imports. According to rancher Luciano Resende, from Rondonópolis (MT), the demand from meatpackers for cattle decreased in the last week. As a consequence, the

Source: g1.globo.com