China Quiz On Beef Imports Causes JBS, Marfrig Shares To Dip

Shares of JBS SA, the world’s largest meat company, and other Brazilian beef producers fell sharply following news that China has launched an investigation into its surging beef imports, Hallie Gu and Dayanne Sousa reported this for Bloomberg News.

Concerns over reduced sales caused JBS shares to tumble, making it one of the worst performers on Brazil’s benchmark Ibovespa index, falling as much as 3.3%. I Photo: JBS Facebook

China, the world’s biggest beef buyer, announced that it will evaluate whether a surge in overseas shipments has harmed its domestic industry, according to the Ministry of Commerce.

The investigation, prompted by petitions from Chinese industry associations, is expected to conclude within eight months but could be extended under special circumstances, according to a ministry statement.

Beef imports to China increased significantly from 2019 through mid-2024, impacting local producers. Representatives from China's animal husbandry sector in key producing regions claim the surge has caused severe losses for the domestic industry.

If China implements protectionist measures, major exporters such as Brazil, Argentina, Australia, and the United States are likely to face significant challenges.

Concerns over reduced sales caused JBS shares to tumble, making it one of the worst performers on Brazil’s benchmark Ibovespa index, falling as much as 3.3%. Minerva SA shares dropped 3.1%, while Marfrig Global Foods SA shares plunged 7.8%.

China’s domestic beef industry has been struggling with plummeting prices, which have hit multi-year lows due to oversupply and sluggish demand. Brazil accounts for nearly half of China’s beef imports, while the Asian country similarly represents a critical market for Brazil, typically purchasing nearly half of its beef exports.