Brazil Expected to Fill 1.1 Million-Tonne Beef Quota for China by July 2026
The economy grew 2.3% in the 1Q26 compared to the 1Q25. Seasonally adjusted GDP increased 0.7% from the previous quarter. Regarding demand, exports had the strongest increase (+9.8%), followed by private consumption (+2.7%), while fixed investment decreased 11.6%. By sector, the largest gains came from fishing (+27.5%), agriculture, livestock, hunting and forestry (+18.1%), as well as mining and quarrying (+12.3%); manufacturing (-1.7%) and trade (-0.3%) declined. (Indec)
AGCO Corporation appointed Emiliano Ferrari as General Manager of Fendt and Valtra for Argentina, as well as Commercial Director for Hispano-America. (AGCO Corporation)
The Federation of Regional Meatpacking Industries stated that informality in the beef chain and clandestine slaughter have increased unfair competition and harmed the sector’s economic sustainability. According to the entity, a 10% decline in slaughter reduced meatpackers’ operating scale, raising costs for transportation, logistics, energy and fuel, while tight margins make the impact of tax and sanitary evasion more severe. The entity calls for greater transparency and supports the adoption of a new electronic slaughter control system by the government. (FIFRA)
The 1.1 million-tonne quota for Brazilian beef exports to China in 2026 is expected to be filled in July, according to Safras & Mercado. In May, Brazil shipped 157.6 thousand tonnes to the Chinese market, up 14.25% from the same month in 2025. From January to May, China imported more than 1.3 million tonnes of beef, a 19% increase, with Brazil accounting for 55% of the total. (Safras & Mercado; Datagro)
The Federal Government cancelled approximately US$ 10.8 million that had been allocated to the Rural Insurance Premium Subsidy Program. The reduction follows an approximately US$ 89 million budget freeze in May and a previous US$ 5 million cancellation, out of an initial budget of approximately US$ 194.6 million set in the 2026 Annual Budget Law. (FGV Agro)
Rabobank pointed to important risks for Brazilian agribusiness in the 2H26, with El Niño expected to start in July and strengthen through the Southern Hemisphere summer. The bank projects a soybean crop record in Brazil, estimated at 182 million tonnes in 2025/26, and raised its corn production forecast to 138 million tonnes. The report also highlights expectations of strong cotton output, pressure on beef exports as China’s quota is filled, weak demand for orange juice, a moderate recovery in milk and improving pulp prices toward the end of the year. (Rabobank)
The State of Rio Grande do Sul’s wheat crop in 2026 is expected to fall 36.39% to 2.20 million tonnes. Planted area is expected to decline 30.18% to 814,200 hectares, while average yield is estimated at 2,701 kg/ha. The reduction reflects high production costs, low economic attractiveness of cereals, and increased perception of production risk, associated with the forecast of El Niño during winter and spring. (Emater/RS-Ascar)
The Colombian Agricultural Institute inspected 255 hectares of Jatropha curcas in the department of Atlántico, Colombia, as part of the Good Agricultural Practices certification process for Empresa Agroforestal de Colombia S.A.S. The project is distributed across three farms in the municipalities of Piojó and Ponedera and aims to produce sustainable vegetable oil for international markets, including China. At peak productivity, the harvest can reach up to 5 tonnes of fruit per hectare per year, generating between 550 and 600 liters of oil per hectare. (ICA)
Colombia advanced the monitoring of antimicrobial use in the dairy sector through a pilot study conducted by the Agricultural Institute and FAO, in coordination with the private sector. Completed in April 2025, the study assessed the use and commercialization of antimicrobials on dairy farms with good livestock practices, aiming to strengthen surveillance of antimicrobial resistance under the “One Health” approach. The initiative seeks to generate evidence to guide public policy, improve records on farms and at points of sale, promote the responsible use of veterinary medicines, and enhance food safety. (ICA; FAO)
Representatives of the IMF visited the Grain and Oilseeds Traders Association’s HQ in Paraguay on June 16 as part of the IMF’s annual technical mission to the country. The meeting addressed the agricultural season, the impact of rising fertilizer costs, Paraguay’s foreign trade, and economic growth prospects for the coming years. After concluding its agenda in the country, the IMF is expected to prepare a report with conclusions and recommendations for its Executive Board. (Capeco)
Agroexports totaled US$ 3.899 billion between January and April 2026, up 6.9% compared with the same period in 2025. Traditional exports rose 35.8%, driven by coffee, while non-traditional exports increased 5.7%, led by fresh grapes, avocados, blueberries, mangoes, asparagus, and cocoa. The country also expanded the international presence of ginger, with certified exports rising from 16,785 tonnes in 2019 to 44,482 tonnes in 2025 and reaching 53 markets. (Midagri; Senasa)
The Government expanded Agrobanco’s rural network with 11 new offices in different regions of the country. In 2026, the bank has already disbursed more than US$ 142.6 million through 35,268 loans aimed at family farming, with a focus on chains such as olives, oregano, and beef. (Midagri; Agrobanco)
The Government approved the regulation of Law No. 31920, aimed at industrializing potato production and increasing value added for more than 711 thousand families of farmers. The regulation seeks to connect production with agroexport, gastronomy and large-scale market chains, promoting activities ranging from primary processing to products such as chips, instant mashed potatoes and modified starch. (Midagri)
The Rural Federation of Uruguay called for measures to reduce costs and restore the competitiveness of agriculture. The organization said diesel prices increased 26.3% in three months, from approximately US$ 1.22 per liter in February to US$ 1.54 per liter as of June 1st, despite the decline in international oil prices. The federation also pointed to the effects of the fiscal deficit and exchange-rate lag, and reiterated its call for eliminating the “municipal 1%” levy, which it considers unjustified. (Federación Rural)
The cattle pregnancy rate in the country reached 81.1% in the latest breeding season, according to data presented at the XXIV Workshop for the Evaluation of Cattle Pregnancy Diagnosis, held at the Rural Society of Durazno. The result remained above 80% for the third consecutive year. Specialists highlighted the greater stability of the country’s cow-calf sector, associated with improved management, technology adoption and the use of databases for reproductive analysis. (XXIV Workshop for the Evaluation of Cattle Pregnancy Diagnoses)
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