MercoPress. South Atlantic News Agency

China halts meat imports from Brazil, Argentina, Uruguay, and Mongolia

The main Argentine plant affected by the measure insisted on the lagging exchange rate between the peso and the US dollar as a key factor for the business to be profitable

China’s customs authorities have suspended beef imports from seven meatpacking facilities across Brazil, Argentina, Uruguay, and Mongolia as of March 3, 2025. The affected companies include two Argentine exporters (Frigorífico Regional General Las Heras SA and Frio Dock SA), three Brazilian slaughterhouses (Frisa Frigorífico Rio Doce S/A, Bon-Mart Frigorífico Ltda, and JBS S/A), one Uruguayan facility (Frigorífico Sirsil SA), and a Mongolian supplier. No official reason for the measure was provided, though it follows a 2024 record of 2.87 million metric tons of beef imports, which led to an oversupplied market and historically low domestic beef prices in China.

The suspensions come amid an ongoing investigation by China’s Ministry of Commerce, launched late last year, into the surge of beef imports and their impact on local producers.

In Brazil, the suspensions are linked to non-compliance with Chinese registration requirements, and the affected companies are working on corrective measures. “The companies involved have already been notified and are adopting corrective measures to meet the requirements of the Chinese health authority,” the Brazilian Association of Meat Exporters (Abiec) said in a statement.

Argentina's Frigorífico Regional General Las Heras SA, for example, ran into trouble after failing to deliver 70 containers in November 2024 due in part to exchange rate problems and operational constraints. “Since the beginning of 2024, we had some problems with the backward exchange rate, and we were forced to close in the month of June. We made some reforms in the slaughterhouse, in the slaughter room, to be able to have the European Union approval, and we reopened in July. We had some debts with some consignees that we were able to pay. We have been operating since last July and the production rate is lower than before, so some deliveries have been delayed. We have collected some advances, and we are working on a daily basis to fulfill these contracts,” businessmen from the Las Heras plant were quoted as saying.

“Obviously, their demands are urgent, and the slaughterhouse has a slaughter rate that can meet those demands at a lower rate than it had before. But we are struggling with a backward exchange rate with chambers that have turned their backs on this problem. We are not the only meat packing plant with problems in the delivery of containers,” the Las Heras sources added.

”Today, the business with China does not (...) work as it used to because we have a very backward exchange rate. The 70 containers represent one month of production for the meat packing plant, it is not such an immense inconvenience to face. We are making an effort to meet this demand. We will certainly need two or three more months to solve it. ... Some will understand and others are a little more reluctant but it is on this way. Today, the exchange rate does not help at all, and the slaughterhouse works with idle capacity, with a slaughter of 1,000 heads per week,” it was also explained.

China, the world’s largest beef importer, relies heavily on Brazil, Argentina, and Uruguay as key suppliers. The import surge has raised concerns about potential trade restrictions, with results from the investigation expected by the end of 2025.

This could affect major exporters, including Brazil, Argentina, Australia, and the United States, especially as China has already announced a 10% tariff on US beef starting March 10, 2025. The situation reflects Beijing’s efforts to stabilize its domestic market amid claims that excessive imports are harming Chinese cattle farmers.