🔴 Selloff or Market Correction? Either Way, Here's What to Do NextFind Stocks Now

China and Brazil to try out beef traceability plan

Published 07/10/2024, 07:00 AM
Updated 07/10/2024, 07:05 AM
© Reuters. FILE PHOTO: An employee works at the assembly line of jerked beef at a plant of JBS S.A, the world's largest beef producer, in Santana de Parnaiba, Brazil December 19, 2017. REUTERS/Paulo Whitaker/File Photo

BEIJING (Reuters) - China, the world's largest beef importer and Brazil, the biggest supplier, will set up a pilot scheme as part of efforts to make beef production more sustainable, state media said on Wednesday.

Beef is regarded as one of the most emissions-intensive forms of food, especially in Brazil where food production has been associated with clearance of tracts of carbon-trapping forest.

China's State Administration for Market Regulation has met with Brazilian institutions to discuss methods to ensure the transparency of the beef supply chain and the establishment of a cross-border traceability platform, CCTV said. It did not provide further information on timing.

The countries agreed a unified global standard would be central to the traceability system, which would also help to combat counterfeit beef.

Chinese companies have long prioritised price over sustainability, but are slowly gaining interest in greener supplies.

In contrast to sustainability efforts in the West that have often been consumer-led, China's shift is driven first of all by policy signals as well as investor pressure.

Traders and sustainability analysts, however, say higher costs and logistical challenges are likely to limit demand for sustainable goods.

Cattle ranching in Brazil is linked to nearly 24% of global annual tropical deforestation and approximately 10% of total global greenhouse gas emissions, according to environmental organisation The Nature Conservancy.

© Reuters. FILE PHOTO: An employee works at the assembly line of jerked beef at a plant of JBS S.A, the world's largest beef producer, in Santana de Parnaiba, Brazil December 19, 2017. REUTERS/Paulo Whitaker/File Photo

Cattle pasture is the most common initial use for deforested areas in the Amazon (NASDAQ:AMZN) and neighboring Cerrado savanna, a practice that faces strict legal limits but continues illegally.

China imported 2.74 million metric tons of beef in 2023, with more than 40% sourced from the South American producer, according to Chinese customs.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.