Major Brazilian meatpacking operations are reducing slaughter volumes in the state of Mato Grosso do Sul as the country approaches its 2026 beef export quota limit for China.
The move by industry leaders JBS and Iguatemi Beef is a defensive measure to prevent shipments from exceeding the tariff-free threshold, which would trigger a steep 67% surcharge on additional exports.
106 million tonnes, packers are managing throughput carefully to maximize revenue under the current preferential terms.
The operational slowdown highlights the immediate impact of trade policy constraints on supply chain decisions.
With the 2026 quota set at 1.106 million tonnes, packers are managing throughput carefully to maximize revenue under the current preferential terms.
This comes after Brazilian meatpacking operations faced earlier disruptions following the exhaustion of previous quota periods, where shipments were already subject to elevated duties.
The situation adds to a challenging trade environment for Brazilian agribusiness.