Minerva Foods, a major South American beef exporter, told markets on Monday that the Agriculture Ministry of Colombia has announced the approval of the health protocol to open the Chinese market to exports of Colombian beef.
Once the bureaucratic hurdles are cleared, China will become the main destination for beef from Colombia, brokerage XP said in a note to clients.
“The ability to ship across the Pacific is another positive differentiator, although some key information is still unclear, such as (i) the age of cattle (e.g., Brazil has a 30-month age limit, Uruguay and Argentina none); (ii) self-imposed bans in cases of atypical BSE (as in Brazil), and (iii) the list of approved plants (we expect at least one from Minerva),” XP wrote.
Despite a cattle herd of 29.6 million — larger than Australia’s — Colombia remains a small player in the global beef trade. Most production remains on the domestic market, while exports to Russia account for 41 percent of shipments. Chile follows with 18 percent.
With more than 1.4 billion people, China stands out as the world’s largest beef market. In 2022, China imported approximately 3.5 million metric tons of beef.
Colombian producers will face stiff competition from Brazil and Argentina, according to a recent report by the U.S. Department of Agriculture.
In its announcement to the market, Minerva said its exposure to the Chinese market totals eight production units with a slaughter capacity of around 12,000 head of cattle per day, with three plants in Brazil, four plants in Uruguay, and one plant in Argentina.
The company’s recent acquisitions will make it the second-largest beef processor in Brazil and the top meat producer in Uruguay.
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