Bolivian meat factory shut down, China buyer or turn to Brazil?

Bolivia's meat industry has been hit by an unprecedented storm.The National Meat Workers Union (Contracabol) announced that meat factory workers across the country will begin an indefinite strike on November 18 to protest domestic meat supply shortages, rising prices, ranchers raising prices for live cattle and government inaction.This incident not only makes Bolivia's domestic meat market into turmoil, but also may have some impact on the global meat market.

It is understood that Bolivia's domestic meat supply has been tight for a long time and prices remain high, resulting in a sharp rise in the cost of living for residents.Workers believe that the government has placed too much emphasis on meat exports at the expense of supply security in the domestic market, which is the main cause of the current predicament.According to industry sources, more than 60% of Bolivia's meat production capacity is used for export, leaving only 40% for the domestic market. This unbalanced supply-demand relationship exacerbates the soaring domestic price.

The Bolivian government did not immediately yield to the workers 'demands for strike.Rural Development and Lands Minister Yamir Flores said the government was actively seeking solutions but it would take time to analyse the reasonableness of beef prices.However, the workers 'union did not buy it, insisting that the government take immediate measures to solve the supply shortage and high prices, otherwise the strike will continue indefinitely.

Bolivia, as one of the important meat exporters in South America, has been relatively stable in its exports to the China market.According to the official website of the General Administration of Customs, three Bolivian beef enterprises have been qualified to export to China.However, if the indefinite strike continues, it is likely to affect the export plans of these enterprises, which in turn will have a certain impact on the export volume of major exporting countries such as South America.

While Bolivia's meat industry is struggling, Brazil is poised to become the new darling of China's meat market.Brazil and China will formally reach an agreement Wednesday to increase Brazilian exports of cattle, pig and fruit, Agriculture Minister Carlos Favaro said Monday, CNN reported.This news undoubtedly brings new development opportunities to the Brazilian meat industry.

Favaro stressed that China is already one of the main markets for Brazilian meat (especially beef), and Brazil is actively seeking opportunities to export beef and pig by-products to China.In addition, the Brazilian government has submitted a new round of meat factory qualification applications to China, although the specific announcement time has yet to be confirmed, but this is enough to give Brazil's meat industry hope for the future.