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Brazil cattle processing hitting record as China devours more beef

By Ana Mano

SAO PAULO, Feb 12 (Reuters) – Brazil’s cattle slaughter activity in the fourth quarter showed cattle packers increased processing by 13.1% from the same period in 2024, preliminary data from Brazil’s census bureau showed on Thursday.

If confirmed, the figure would bring Brazil’s total slaughter to a record 42.3 million head in 2025, as strong Chinese demand accelerates processing and puts Brazil ahead of the United States as the world’s largest producer of beef.

Brazilian government trade data shows Chinese demand remained strong in January, with $650 million in beef shipments to the Asian country last month up almost 45% from a year ago.

Overall, Brazil sold nearly 232,000 metric tons 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 in terms of value and volume.

But going forward, Brazilian companies may not sell as much to their biggest trading partners as Beijing imposes maximum annual import quotas for suppliers for three years. Anything over a certain threshold will be subject to a 55% duty.

China’s “safety measures” have frightened local processors. But with Beijing unwavering on the issue, the Brazilian government is currently discussing with the industry a plan to allocate certain quotas to companies in the same proportion as their exports to China last year to regulate supplies.

Proponents of the move argue that it could prevent upward pressure on cattle prices or a decline in beef export prices as local companies export to China to fill their quotas faster than others. Opponents say this could allow unprecedented interference with food exports.

Beijing will exempt 1.106 million metric tons of Brazilian beef from additional taxes this year. ​On average, local exporters will sell about 92,000 tonnes per month to China below the threshold. This compares with approximately 140,000 tonnes per month in 2025.

(Reporting by Ana ​Mano in Sao Paulo. Editing by Matthew Lewis)

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