Brazil is expected to reach a quota for meat exports to China in August, and the price of live cattle falls

Brazil approaches the limit of the Chinese quota, and slaughterhouses reduce the purchase of cattle
Brazil is expected to reach, in August, the annual limit for beef exports to China, according to the Association of Breeders of Mato Grosso (Acrimat). Because of this, livestock farmers claim that slaughterhouses have already started to reduce the purchase of cattle for slaughter.
This limit defines how much beef each country can sell 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 this it jumps to 55%.
With this policy, China, the main buyer of Brazilian beef, seeks to stimulate domestic production and reduce dependence on imports.
According to cattle rancher Luciano Resende, from Rondonópolis (MT), the demand from slaughterhouses for cattle has decreased in the last week.
As a consequence, the average price of beef cattle in credit sales fell from R$344 to R$332, in the last 10 days.
Now, the sector is waiting to see how slaughterhouses and buyers will adapt to the new scenario.
According to the executive director of Acrimat, Daniel Latorrocara, few countries are able to produce surplus beef like Brazil.
"If China doesn't buy from us and accelerates the purchase from Uruguay and New Zealand, these two countries will stop supplying other countries in the world and there is an opportunity where our animals can be sent until the end of the year", states.
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Source: G1