Brazil Meatpackers Authorised To Export To China, Shares Jump
Brazil's agriculture ministry said on Monday China has authorized 25 Brazilian meat processing facilities to export to China, bringing the total number of authorized plants up to 89.
The news pushed the price of shares in meatpackers, including Minerva, Marfrig and BRF sharply higher, with all three having plants included in the 25.
In a statement, the ministry said the 25 plants include 17 for beef exports, six for chicken, and one each for pork and donkey meat.
"Companies can already export immediately," the agriculture ministry said in a statement.
China is Brazil's largest export market for beef and chicken, with an African swine fever outbreak in the Asian nation expected to push up Chinese demand for Brazilian meat further.
Brazil meatpackers Minerva and Marfrig said in separate securities filings that they each have two plants as part of the 25 that are authorized to export beef to China.
In a list released by the ministry, a BRF plant in Mato Grosso was authorized to export chicken and pork to China.
Minerva said its two plants are the Rolim de Moura and Palmeiras de Goias units in the states of Rondonia and Goias, respectively. They have a combined capacity of 3,500 head of cattle per day.
Marfrig's two plants are the Tangara de Serra and Varzea Grande units in the state of Mato Grosso.
Minerva shares jumped 5%, on track for their biggest rise since April, Marfrig's shares rose 4% and BRF's shares rose 3%. All far outperformed the broader Bovespa index, which was up 0.6% in morning trading.