Beef deal Brazil and China

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hurleyjd

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https://www.yahoo.com/finance/news/brazil-big-beef-winner-china-131351635.html

We will show the Chinese and starve them to death I have heard that before have you.
 
Well, that's disappointing.
Think it will positively influence producer prices here since there will be less Brazilian beef imported?
 
China is seeking a low cost provider.

Brazilian beef shipments to China jumped 62% last month from a year ago as China approves more plants to export. Both wholesale beef and cattle prices jumped about 30% this month, according to figures from Cepea, the University of Sao Paulo research arm.

Keep in mind that Brazil's cost bases is 25% of ours. Translate that to a calf sale. Say I get 1.50 a pound, a Brazilian would get $.38.
 
Regarding the prices paid by the Chinese-- "Brazilians don't have income enough to support the current price level"

My question-- What are the Brazilians going to eat?
 
According to records from the USDA Economic Research Service, the U.S. imported 140.9 million pounds of beef from Brazil last year. Mar 29, 2019

In 2018, Brazil was the world's largest exporter of beef (6,393,406,700 pounds), providing close to 20 percent of total global beef exports, outpacing India, the second-largest exporter, by 527,000 metric tons (1,161,836,321 pounds) carcass weight equivalent (CWE). Jul 1, 2019.

The US does not even rank in the top 15 countries that import from Brazil.

Brazil has the world's second-largest cattle herd—232 million head—and its production is largely based on grass.

USDA's Foreign Agriculture Service (FAS), programs that subsidize and improve pastures and crossbreeding are primary drivers of the overall increase of cattle production in 2019 (another significant factor is improved pasture conditions in major production regions).

Between 1990 and 2018, the Brazilian cattle herd expanded by 56 percent. Brazil's beef production last peaked in 2014, when it reached 9.7 million metric tons CWE. During Brazil's 2014-16 recession, coupled with devaluation of Brazil's national currency, the Brazilian real, beef output continued to grow, though at a slower pace, while higher local-currency denominated prices compensated for higher production expenses.

https://www.ers.usda.gov/amber-waves/2019/july/brazil-once-again-becomes-the-world-s-largest-beef-exporter/





mted_july_finding-beef-exports_post_isd_450px.png
 
Why wouldn't they have the biggest beef herd in the world in equatorial Brazil? The grass is evergreen.
 
bball said:
Well, that's disappointing.
Think it will positively influence producer prices here since there will be less Brazilian beef imported?

Brazil is the no1 exporter of beef last I checked. They can produce beef for less than .50 a lb. Let that meat go to China and less to USA markets should have a positive effect for us as you stated.
 
Caustic Burno said:
bball said:
Well, that's disappointing.
Think it will positively influence producer prices here since there will be less Brazilian beef imported?

Brazil is the no1 exporter of beef last I checked. They can produce beef for less than .50 a lb. Let that meat go to China and less to USA markets should have a positive effect for us as you stated.

"Should"
But when a Brazilian company is part of the big 3 packers you can bet they will make sure their profit margins don't wain, in the US market.
 
sim.-ang.king said:
Caustic Burno said:
bball said:
Well, that's disappointing.
Think it will positively influence producer prices here since there will be less Brazilian beef imported?

Brazil is the no1 exporter of beef last I checked. They can produce beef for less than .50 a lb. Let that meat go to China and less to USA markets should have a positive effect for us as you stated.

"Should"
But when a Brazilian company is part of the big 3 packers you can bet they will make sure their profit margins don't wain, in the US market.

JBS needs to be broke up.
 

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