Chinese Importers Ready to Pay More for Environmentally Friendly Beef

China is beginning to show a change in attitude in global commodity trade. The country, long known for its high sensitivity to prices, is now placing greater emphasis on environmental issues, particularly in imports of beef from Brazil.

This shift is evident from the actions of the Tianjin Meat Industry Association. The organisation represents importers accounting for around 40 per cent of Brazil’s beef purchases in China.

The group has committed to buying 50,000 metric tonnes of certified deforestation-free Brazilian beef by the end of the year.

This amount is equivalent to about 4.5 per cent of Brazil’s total beef exports to China this year.

When uploading the experience on WeChat, Xing described the atmosphere as being in the midst of “tens of thousands of shades of green” in the Amazon forest.

Tianjin’s initiative is considered significant because it challenges long-held assumptions among Brazilian ranchers that China only pursues cheap prices.

This change also emerges amid Beijing’s efforts to strengthen environmental policies in international trade.

China previously revised its forestry law in 2019 to ban illegal timber trade.

Then in 2023, China and Brazil signed a joint commitment to end illegal deforestation triggered by trade activities.

Starting last year, China’s state-owned trading company, COFCO, also pledged to eliminate deforestation practices from its supply chain.

“At the same time, there is awareness, supported by available information, that beef, especially Brazilian beef, is the commodity most linked to deforestation among all agricultural commodities imported by China,” he said.

The Amazon forest has continued to shrink due to land clearing for ranching.

Data from Brazil’s land use monitoring organisation, MapBiomas, shows that 90 per cent of deforested forest areas are subsequently converted into cattle grazing pastures.

According to Xing, patterns of consumption in Chinese society are beginning to change along with rising incomes.

“It’s not just ‘cheap is good’ anymore,” he said. “This means deforestation-free, environmentally friendly, safe, and traceable beef will have a stronger market in the future.”

Nevertheless, price remains a challenge. Many Chinese consumers still face rising food prices, so not all prioritise environmentally friendly products yet.

However, product traceability systems are seen to add value by helping ensure food safety.