Xing Yanling, the leader of Tianjin Meat Industry Association, recently visited the Brazilian Amazon, describing the experience to her peers in China as being “enveloped by tens of thousands of shades of green”.
Representing importers responsible for approximately 40% of China’s beef purchases from Brazil, Xing is leading a significant shift in trade priorities.
Under her leadership, members of the Tianjin association have committed to purchasing 50,000 metric tonnes of deforestation-free certified Brazilian beef by the end of the year.
This figure represents 4.5% of the total beef exports Brazil is expected to sell to China this year and serves as an early indication that China, a dominant force in global commodity trade, may be willing to pay a premium for more sustainable supply chains, reports Reuters.
This pledge challenges the long-held belief amongst Brazilian farmers that China, the world’s largest importer of soy and beef, is solely concerned with price. It follows signals from the Chinese government regarding its intent to address the environmental impacts of trade while safeguarding domestic industry.
Notable actions include a 2019 change to forest law banning illegal timber trade and a 2023 joint commitment with Brazil to end trade-driven illegal deforestation.
Andre Vasconcelos, head of global engagement for the tracking platform Trase, noted that the beef supply chain is particularly suited for such action as it is less central to the Chinese diet compared to other commodities like soy.
He added that there is growing awareness that Brazilian beef is the commodity most closely linked to deforestation amongst China’s agricultural imports. According to the non-profit MapBiomas, 90% of cleared land in the Amazon is converted into cattle pasture immediately after being deforested.
Xing observed that as Chinese consumers become wealthier, they are becoming more discerning, moving beyond a “cheap is good” mindset. She stated that “deforestation-free, green, safe and traceable beef will have a stronger market in the future”. While rising grocery prices make environmental choices difficult for many, the traceability of this project also helps to address significant food safety concerns.
The beef will be marketed under the “Beef on Track” label, designed by the Brazilian non-profit Imaflora. This certification includes four levels of compliance based on supply chain traceability and proof that farms were legally cleared. Tianjin importers have expressed a willingness to pay a 10% premium for beef from meatpackers that can prove their suppliers have no links to legal or illegal deforestation, or slave labour.
However, the impact of this initiative could be hampered by Brazil’s fragile traceability system. Prosecutors warn that cattle transportation documents can be easily defrauded through “cattle laundering,” where bad actors hide wrongdoing in their supply chains. Improvements to this system may take years to implement.
The project has also met with some resistance from within the industry. The beef export group ABIEC, which includes members such as JBS and MBRF, is reportedly displeased with the effort. Sources suggest the group fears that sustainability demand could create new barriers in an already constrained market. In a statement, ABIEC noted that any new labels should align with established systems to avoid “overlaps and requirements that lack public infrastructure for implementation”.
Furthermore, China has introduced import quotas to protect its domestic industry. Brazil is expected to reach its limit of 1.1 million tonnes by the end of next month, coinciding with when Tianjin plans to import its first container of certified sustainable beef. Any imports exceeding this quota are subject to a 55% Chinese tax, which may slow the progress of the initiative.
Despite these challenges, Xing Yanling remains optimistic, noting that Chinese consumers are already accustomed to traceable products, such as eggs with QR codes that allow consumers to trace them back to the originating farm. People are often willing to pay double the price for such verified products.
The “Beef on Track” certification is expected to be ready for adoption by meatpackers and retailers by the end of the year. Marina Guyot, a policy manager at Imaflora, argued that the certification creates an opportunity to value the sustainability efforts companies are already making.
While no Brazilian meatpackers have yet announced plans to adopt the label, the volume of beef currently compliant with similar environmental standards in Brazil is nearly double China’s total imports from last year.
