Brazil secures Uruguay beef quota for China exports

Brazilian President Luiz Inácio Lula da Silva announced that Uruguay has granted Brazil permission to use a portion of its beef export quota to China. This development follows the exhaustion of Brazil’s 1.1 million-ton national quota, which, if exceeded, subjects additional volumes to a 55% tariff. While the Brazilian Association of Beef Exporting Industries (ABIEC) views the move positively, it noted that the impact on 2026 exports may be limited due to the time required for negotiation and shipping.

Simultaneously, the Brazilian cattle supply is shifting due to domestic herd management. Data from Datagro indicates a reduction in the slaughter of female cattle as producers retain them to rebuild herds. This trend is particularly evident in states like Rondônia, Pará, Mato Grosso do Sul, and Tocantins. While this retention is expected to accelerate herd recovery by 2027, it is currently increasing replacement costs for feedlot operators.