JBS SA, the world’s largest meat producer, surged after China officially removed an embargo on beef imports from Brazil, the world’s biggest beef exporter. Marfrig Global Foods SA and Minerva SA also posted strong gains.
JBS jumped 4.3 per cent to 16.9 reais at the close in Sao Paulo, the second-most of companies on Brazil’s benchmark Ibovespa index. Marfrig rose 3.2 per cent while Minerva, which isn’t on the Ibovespa, increased 6.4 per cent.
Premier Li Keqiang announced Tuesday that China will resume beef imports from Brazil that had been suspended since December 2012 after a cow tested positive for mad-cow disease, Brazil’s government said in an e-mailed statement. China’s government will probably allow beef exports from 26 Brazil plants by June, which could represent about $520 million in sales. JBS has immediate clearance for exports from five plants, followed by Marfrig, with two plants, and Minerva, with one, beef exporter group Abiec’s Antonio Camardelli said by phone.
China beef imports totaled 16,480 tons in 2012, accounting for less than 2 per cent of total exports from Brazil. Hong Kong emerged as Brazil’s second-largest beef buyer last year, representing about 20 percent of shipments.
Bloomberg News, edited by ESM
