US tariffs on Brazil will reshape global beef trade flows, analysts say

By Roberto Samora and Kylie Madry

Sao Paulo (Reuters) -US tariffs on Brazil are expected to reshape global beef trade flows and said that Brazil is looking for alternative markets from countries such as Mexico and Australia.

Brazil is the world’s largest beef exporter, China’s main trade partner. In August, Mexico crossed the United States to become the second largest export destination for commodity.

“Brazil beef is likely to increase the purchases of Mexico following the example of Mexico,” Mauricio Nogueira, Director of Livestock Consultancy, said in an interview. He said. “If Mexico begins to send beef to the United States, he will have to buy from someone, he will have to buy it from here.”

Argentina added that it would be another candidate to import and that Brazil would eventually export the beef to the United States.

Athenagro from Nogueira did not change the year -end projection for Brazil’s beef exports. EmbersThe 50% tariffs on the country’s products entered into force on 6 August. This year, consultancy envisages a 7.5% increase in Brazil cattle exports. Until July, this exports increased by more than 13%.

Brazilian Ministry of Agriculture Trade Secretary Luis Rua said Brazil beef helping to keep Mexican inflation under control. It is unclear whether Mexico will re -export materials from Brazil.

“We send it to Mexico, but we don’t know exactly what Mexico will do with meat.”

Economist Thiago de Carvalho confirmed the expectations of a change in global beef flows, and Brazil is selling to the markets previously offered by Australian exporters.

Carvalho added that the US’s cattle flock hit the low levels of low levels, such as strict global cattle materials, and that the factors can also direct the demand for Brazil.

Japan, which traditionally buys meat from the United States, can soon be opened to Brazilian products.

(Reporting by Roberto Samora at São Paulo and by Kylie Madry Ana Mano in Mexico; by Richard Chag)