Brazil poultry products hit by China’s anti-dumping duties

By BLOOMBERG

BEIJING • China plans to impose anti-dumping duties on purchases of broiler chicken products from Brazil, the country’s top supplier, citing a 10-month investigation that said surging imports damaged the domestic breeding industry.

Importers will pay a deposit of as much as 38.4% to Chinese customs on purchases effective Saturday, the Ministry of Commerce said in a preliminary ruling following initial findings from an investigation that started in August. Supplies from BRF SA are subject to a 25.3% rate and an 18.8% duty will be imposed on goods from JBS SA subsidiaries, according to a list published by the ministry.

The companies are Brazil’s top chicken producers.

The tariffs will reduce exports from Brazil and may lead to more US imports once China and the Trump administration improve trade relations, said Kong Pingtao, GM at Beijing Pro-Agri Communication Co. In February, China lifted extra duties on US chicken imports, although shipments are still banned amid bird-flu concerns.

The duties are not expected to halt Brazil’s exports to China because of ample demand in the Asian nation, but they may inhibit growth for shipments, Ricardo Santin, a director at industry group ABPA, said last Friday in a telephone interview.

Brazilian companies are weighing a minimum price deal with China, though a complaint at the World Trade Organisation is also being considered, he added. Earlier, the group said in a statement the duties signal a “regression” in trade relations.