The Chinese market has huge potential, experts provide support for Brazilian meat factory’s sales to China
By: Date: 2021-04-01 Categories: Internationalfood Tags: ,
A study recently completed by Roland Berger International Management Consulting Company (Roland Berger) shows that although China is gradually restoring pork supply and consolidating its poultry production chain, there is still room for meat exports to the Chinese market in the future. Therefore, in order not to lose this huge market, Brazilian meat factories should adopt new business strategies, such as investing in product quality, to meet the growing health and environmental requirements of Chinese buyers.

   Brazil’s”Economic Value” reported that Roland Berger partner, Brazil and Portugal market president António Bernardo (António Bernardo) said that China is a huge market, different regions have different needs, Brazilian meat The factory needs to have a more solid commercial operation and partnership. He said that China believes that Brazilian meat is competitive, but in general, meat sold in Brazil is dominated by low value-added products.
  China’s meat consumption will continue to grow
   China’s position as the largest buyer of Brazilian meat is increasingly consolidated. According to data from the Brazilian Animal Protein Association (ABPA), Brazilian pork exports to China in 2020 amounted to 513,500 tons, an increase of 106%year-on-year, accounting for 50.7%of Brazil’s total exports. In terms of chicken meat, Brazil’s exports to China last year were 673,200 tons, an increase of 15%year-on-year, accounting for 16%of Brazil’s total exports. In addition, according to data from the Brazilian Meat Processing Plant Association (Abrafrigo), Brazil exported 1.2 million tons of beef to China last year, with an export value of US$5.1 billion, accounting for 60.7%of Brazil’s total beef export.
  Roland Berger predicts that until 2025, China’s meat consumption will continue to grow at an annual rate of 2.2%. Despite the increase in local production, Brazil may still increase sales to China. The consulting firm predicts that, based on Chinese demand, Brazilian meat exports will grow at a rate of 0.7%per year in the next ten years, but the growth rate is slowing because the average annual growth rate over the past ten years is 1.2%.
  Brazilian meat factory deepens the Chinese market
  While paying attention to this curve, Brazil also has competitors such as the United States and Russia. Therefore, the Brazilian Meat Association has begun to establish a more stable structure in China. For example, ABPA, which has an office in China, will establish a larger base in China to support its members with the support of the Brazilian Export and Investment Promotion Agency (Apex), such as meat giants such as BRF, Seara, and Aurora. These companies themselves It also has offices in China.
  ”These companies must launch new products and cultivate their own brands. At the same time, there are also many opportunities in the fast-growing e-commerce field and instant products. We have now begun to develop in this direction.” ABPA Chairman Ricardo · Ricardo Santin said.
   In addition, before the outbreak of the new crown epidemic, the Brazilian Meat Exporters Association (Abiec) decided to establish offices in Beijing and Shanghai to increase research on the Chinese retail industry and invest in Chinese media to promote Brazilian products.
  Like chicken and pork factories, Brazilian beef factories have been seeking to expand their space in China. However, with the improvement of Sino-US economic and trade relations, Beijing has slowed down the authorization of Brazilian beef processing factories to China. . In this case, Wilhelm Uffelmann, the global head of Roland Berger’s animal protein field, said that Brazilian companies must continue to invest to improve efficiency.
   He said that with the improvement of genetics and nutrition, meat production still has room for growth, and the added value of products also has room for improvement.”The internationalization window will be opened in the next three years. This is the implementation of a new strategy. Moment.”