MercoPress. South Atlantic News Agency

Chinese meat industry and farmers complaining about surging Mercosur imports

Safeguard measures taken by the world’s biggest beef buyer can be expected to hurt top exporters and trade partners of China, Mercosur block partners, and Australia.

Chinese farmers and meat industry associations are complaining about the surge in foreign beef imports and the Ministry of Commerce has promised an investigation into the situation, according to Beijing government sources.

 However the investigation is likely to take some 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 can be expected to hurt top exporters and trade partners of China such as Brazil, Argentina and Uruguay, Mercosur block partners, and Australia.

Chinese 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 the petitioners. 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, iron and steel products, and electric vehicles..

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. Another argument, according to meat exporters, is when China increase sanitary inspections, which delay shipments.

Paraguay targets the US market

Meantime the only Mercosur member with no diplomatic relations with Beijing and also a significant producer lf beef has set a bold new goal for 2025, making the US to become a solid customer with some 15% of the country’s exports.

“United States has been phenomenal,” said José Carlos Martin, president of Paraguay’s National Animal Health and Quality Service (Senacsa), taking into account that the US in 2024 was a leading buyer of Paraguayan beef.

From January to November 2024, the U.S. emerged as Paraguay’s third-largest beef export market by volume, with 25,309 tons shipped—behind only Chile and Taiwan. In terms of revenue, the U.S. ranked fourth, generating over US$ 127 million, with Brazil taking the third spot.

Despite fierce competition, Paraguay’s performance in the U.S. market far exceeded expectations. The country shattered its original 2024 goal of exporting 10,000 tons, a projection set by the Paraguayan government.

“We exceeded the U.S. Department of Agriculture’s (USDA) forecast by four times and Senacsa’s own forecast by 2.5 times,” Martin confirmed.

Looking ahead, Martin emphasized the vast potential of the U.S. market for Paraguayan beef. “The United States is a massive market, and for the volume we can offer, it continues to hold many surprises for us,” he said.

Martin revealed that the government, working closely with private sector stakeholders, is aiming to double beef exports to the U.S. by 2025, targeting 50,000 tons. This ambitious target would make the U.S. account for some 15% of Paraguay’s total beef exports