China launches probe into beef imports as farmers struggle

China is starting a probe into beef imports to decide if a surge in shipments from overseas has hurt the domestic industry, the Ministry of Commerce said Friday, Dec. 27.

The investigation, launched at the request of domestic industry associations, is likely to end within eight months, but may be extended under special circumstances, according to a statement on the ministry’s website.

Any safeguard measures taken by the world’s biggest beef buyer may hurt top exporters, such as Brazil, Argentina and Australia.

The chart below builds on DataLiner data, a Datamar-powered maritime intelligence tool. It shows Brazil’s exports of meat products to China in TEUs between January 2021 and October 2024.

Meat Exports to China | Jan 2021 – Oct 2024 | TEUs

Source: DataLiner (click here to request a demo)

Imports surged between 2019 and mid-2024, dealing a blow to the domestic industry, groups representing the animal husbandry sector from several top producing regions said in their petitions. China’s beef producers are struggling with huge losses after local prices plunged to multi-year year lows due to oversupply and sluggish consumption.

The latest investigation and any likely action could potentially hurt farmers and producers in Brazil, which accounts for almost half of China’s total beef imports. Even though Brazil has embraced closer ties with Beijing, it has also pushed back against a perceived deluge of cheap exports from China.

Brazil imposed new tariffs on various products from China and other Asian nations in October, including a duty increase on fiber optics and cables, and iron and steel products.

Some earlier probes by China against other countries resulted in hefty taxes. It slapped anti-dumping duties in 2020 on Australian barley as diplomatic tensions escalated between the two trading partners.

By Hallie Gu

Source: Bloomberg

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