China removes anti-dumping tariff on Brazilian poultry

Chicks in Brazil. Photo: Confederação Nacional de Agricultura

China has removed the anti-dumping process against Brazilian poultry that increased importation tariffs up to 34.2%. In addition, the Chinese government has also authorised 12 new chicken plants from Brazil to export.

This has been agreed following negotiations between Brazil and China’s governments and private sectors, and also comes at a time that the 2 countries celebrate 50 years of trade relations. Brazil already is – and remians – the main supplier of fresh chicken meat to the Chinese market.

With the end of anti-dumping tariffs, the Brazilian Association of Animal Proteins (ABPA) highlights that Brazilian exporters will again compete on an equal footing with other exporters.

There are now 8 new slaughterhouses and 4 warehouses that have been authorised. The slaughterhouses are in Paraná (5 units), Santa Catarina (2 units), and Rio Grande do Sul (1 units). The warehouses are in Paraná (1 unit), Santa Catarina (2 units), and Rio Grande do Sul (1 unit).

“It is the largest increase in poultry plant licenses ever carried out by China, after 5 years without new units authorised. This is also an important recognition from China of Brazilian poultry quality,” highlights the president of ABPA, Ricardo Santin.

Before that, Brazil had 47 poultry plants qualified to export to China – now it has 55 poultry factories and 4 cold stores.

“We have high expectations about the performance of Brazilian sales to the Asian country with these qualifications, especially as new business groups will have access to this important market for the first time,” notes ABPA’s markets director, Luís Rua.

According to him, China is the main destination for Brazilian chicken meat exports, with 10% of all shipments made by the sector in the first 2 months of this year.

Best February ever

Brazilian exports of chicken meat totaled 397,700 tonnes in February 2024, exceeding by 4.7% the same month last year (379,200 tonnes). Those numbers mean the sector will achieve its best February ever.

Export revenue generated in the second month of this year reached US$707 million. The number is 4% lower than the total recorded in the same period of the previous year, with (US$736.3 million).

In the first 2 months of this year, chicken meat exports totaled 802,200 tonnes, a volume 0.3% higher than that achieved in the first 2 months of 2023, with 800,100 tonnes. Accumulated revenue reached US$1.390 billion, a balance 12.7% lower than the comparative period of 2023, with US$ 1.593 billion. In addition, the Asian giant habilitated 12 more chicken plants in Brazil to export.