Brazil cattle processing hitting record as China devours more beef

By Ana Mano

SAO PAULO, Feb 12 (Reuters) – Brazil’s cattle slaughtering activity for the fourth quarter shows beef packers boosted processing by 13.1% from the same period in 2024, according to preliminary Brazilian census bureau data released on Thursday.

The tally, if confirmed, would take Brazil’s total slaughtering to 42.3 million head in 2025, a record, as strong Chinese demand drove an acceleration of processing and put Brazil ahead of the United States as the world’s biggest beef producer. 

Brazil’s government trade data indicates Chinese demand remained strong in January, with $650 million worth of beef shipments to the Asian nation last month, almost 45% more than a year ago. 

Overall, Brazil sold some 232,000 metric tonnes of fresh beef to multiple destinations in 2025, generating almost $1.3 billion in revenue. China’s share of Brazil’s beef trade was roughly half, by value and volume.

Going forward, however, Brazilian companies may not be selling as much to their top trade partner, as Beijing introduced maximum annual import quotas for suppliers over three years. Anything exceeding a certain threshold will be levied a 55% tariff. 

China’s “safeguard measures” spooked local processors. But as Beijing is unwavering, the Brazilian government is now discussing with the industry a plan to assign specific quotas to companies, in the same proportion as their exports to China last year, to regulate supplies. 

Defenders of the move argue it could avoid upward pressure on cattle prices, or a fall of beef export prices, as local companies rush to export to China to fill their quota faster than others. Detractors say it may allow unprecedented meddling with food exports.

Beijing will exempt 1.106 million metric tons of Brazilian beef from additional tariffs this year. On average, local exporters would sell some 92,000 tons monthly to China under the threshold, which compares with nearly 140,000 tons monthly in 2025.

(Reporting by Ana Mano in Sao PauloEditing by Matthew Lewis)