Beef: ‘Quotas and Surcharges Distort Trade,’ Says Brazil’s Beef Exporters’ President on China’s Restrictions

Published on: January 26, 2026

“…the restriction adopted by China has no relation whatsoever to sanitary issues…”

Roberto Perosa is Executive President of the Brazilian Beef Exporters Association (ABIEC) and former Secretary of Trade and International Relations at Brazil’s Ministry of Agriculture.
Perosa holds a law degree from Universidade Paulista, with specializations in government relations, international law, business ethics and corporate social responsibility from FGV and Insper.


AgriBrasilis – Why did China restrict purchases of Brazilian beef?
Roberto Perosa – The restriction adopted by China has no relation whatsoever to sanitary issues. Brazilian beef is internationally recognized; we export to 177 countries. What China implemented was a safeguard measure, which is a trade protection instrument. They claim that the volume of imported beef is harming domestic Chinese production. Local production has high costs because it relies on imported inputs and faces structural limitations. Even after we explained that Brazilian beef exported to China does not directly compete with domestic production since it complements the Chinese diet with different cuts and uses, the measure moved forward. Unfortunately, Brazil was the country most affected in the redistribution of quotas.

AgriBrasilis – What are the risks of Brazil’s dependence on the Chinese market?
Roberto Perosa – The main risk is concentration. In 2025, we exported around 1.7 million tonnes of beef to China. For 2026, the defined quota is 1.106 million tonnes, representing a reduction of approximately 35%, or around 600 thousand tonnes. There is no other market in the world capable of absorbing this additional volume with the same speed and scale. This raises concern across the entire chain, because the surplus impacts the industry, cattle farmers and may put pressure on prices.

AgriBrasilis – Does the sector still feel the effects of the U.S. “tariff hike,” lifted in November 2025?
Roberto Perosa – Yes, the tariff hike had an impact, especially economically. The United States is experiencing the smallest cattle cycle in the last 80 years and is a highly demanding and profitable market for Brazilian beef. In 2025, we expected to export between 400 and 450 thousand tonnes, but ended up shipping around 270 thousand tonnes. That volume failed to go to a higher-value market and had to be redirected to other destinations, mainly in Asia, with lower margins. In terms of total export volume, we managed to offset the loss, but we failed to capture value. With the removal of tariffs, the U.S. becomes a very relevant destination again in 2026.

AgriBrasilis – What are the consequences of quotas and surcharges for the sector?
Roberto Perosa – Quotas and surcharges distort the natural flow of trade. In China’s case, in addition to volume limits, there is a 55% surcharge outside the quota, added to the regular 12% tariff, making competition outside the quota virtually unfeasible. This complicates industry planning, affects slaughter decisions, compresses margins and can create imbalances throughout the production chain. When large volumes lose a clear destination, the impact quickly reaches the farm level, employment and income, since cattle ranching is present in every municipality in Brazil.

AgriBrasilis – Why has Brazil become a target in these trade disputes?
Roberto Perosa – Because Brazil has become the world’s largest producer and exporter of beef. We have unique production conditions: vast territory, predominantly pasture-based production, competitive costs and high industrial efficiency. This allows Brazilian beef to reach international markets at prices lower than those practiced by local cattle farmers in many countries. In times of domestic pressure, some governments resort to protectionist measures to defend their farmers and Brazil ends up being directly affected by its competitiveness.

AgriBrasilis – Given this context, how did the country manage to break export records in 2025?
Roberto Perosa – We broke records because Brazilian cattle ranching is going through a very positive moment. In 2025, we exported around 3.5 million tonnes, reaching nearly US$ 18 billion in revenue, with sales to 177 countries. Volumes were reallocated when we faced barriers, especially in the United States, directing more beef to Asia. This demonstrates Brazil’s ability to adapt quickly, the breadth of our market access and the joint effort of cattle farmers, industry and international negotiations carried out over recent years.

AgriBrasilis – What measures could the sector adopt to minimize these vulnerabilities?
Roberto Perosa – The main strategy is market diversification. The more countries we have open, the lower the dependence on a single destination. That is why we are engaging with the government to advance access to markets such as Japan, South Korea, Turkey, Vietnam and others. Having multiple options allows us, at any given moment, to choose the most appropriate markets for each type of cut, reducing risks and ensuring stability across the entire Brazilian beef production chain.

 

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