China-Brazil Economic Ties: China has a growing appetite for Brazilian beef

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Brazil is the world's top exporter of beef. The growing demand from China is expected to drive the South American country's beef export levels to a record in 2019. Lin Nan has the story.

Eating Brazilian barbecue with some samba music is always a good choice for Liu Qiang to treat his friends or celebrate.

LIU QIANG CUSTOMER "I come here every one or two months. A Brazilian friend took me here. I like the authentic meat and the vibe."

In Shanghai, the Brazilian barbecue is a popular symbol of the country along with its football and samba culture.

CLAUDE CERBOLLES, GENERAL MANAGER LATINA RESTAURANT "Sometimes during lunch, we can turn over around 2 times and our sitting capacity is 250 people."

China is the world's fastest-growing market for beef. Its imports have almost tripled since 2014.

LIN NAN SHANGHAI "Rapid economic growth in China over the past decade has expanded its middle class, and their demand for red meat is on the rise."

Brazil is the world's top exporter of beef. It has sold record volumes of beef for two consecutive years, driven by strong demand from China. CP Group is the biggest importer for Brazilian beef in China. Its import volume has been doubled every year in the past 3 years.

SIMON JIANG, SENIOR VP CP GLOBAL SUPPLY CHAIN, CP GROUP "Most of the Brazilian beef is processed and consumed through the central kitchens of restaurant chains. It is highly popular in the business-to-business market. We will provide more smaller package and do more marketing campaigns in the future."

According to an association of more than 30 Brazilian meat-packing companies, Brazil exported over 1.6 million tons of beef in 2018, of which Chinese mainland and Hong Kong accounted for 44 percent.

XU WEI, GENERAL MANAGER SHANGHAI NEW SOURCE INTERNATIONAL TRADING CO., LTD. "China's domestic supply of beef can't meet its demand, while most of Brazil's beef products are suitable for Chinese cooking and eating habits and at a moderate price. There is a great potential for the beef trade in the future."

Industry insiders say the escalating trade war between China and the US may create more opportunities for the Brazilian beef suppliers, making it one of the alternatives for the US beef if it becomes too expansive due to the rising tariffs. Lin Nan, CGTN, Shanghai.