Meatpackers shares bounce as China resumes Brazil beef imports
1 min read
By Tatiana Freitas
China will restart beef imports from Brazil, the world’s greatest exporter, a month after the commerce was halted over a case of mad cow illness. Shares on Brazilian meatpackers jumped.
The Asian nation has agreed to renew purchases of Brazilian beef from Thursday, sending shares on JBS SA, the world’s largest beef producer, up as a lot as 4.6%, probably the most in every week. Minerva SA soared as a lot as 6.7%, additionally probably the most in every week, whereas Marfrig World Meals gained 3.4%.
Brazil is the highest beef provider to China, which can also be the primary vacation spot for Brazilian beef exports, accounting for roughly 60% of shipments. The mad cow case in Brazil is “atypical,” which usually means the animal contracted the illness spontaneously and presents no menace to the nation’s herds.
The lifting of the commerce curb comes forward of Brazilian President Luiz Inacio Lula da Silva’s go to to China, scheduled to start out on Sunday.
The choice to halt commerce between the 2 nations was taken on Feb. 22 as a part of a sanitary protocol. President Lula is anticipated to renegotiate that requirement beneath which a single mad cow case triggers an export ban for the entire nation. Brazilian meatpackers additionally count on the go to can pave the best way for them getting extra permissions to ship beef to China.
(Updates with meatpackers’ share strikes within the second paragraph.)
© 2023 Bloomberg L.P.
