BRAZIL BRACES FOR MORE CHINESE DEMAND, HIGHER FOOD PRICES AMID US TRADE WAR

Brazil stands to gain from the U.S.-China trade war as China increases agricultural imports, like soy and meat, from Brazil to avoid U.S. tariffs. This boosts Brazilian exports and profits but may raise domestic food prices, worsening inflation. In 2024, food costs jumped 8%, straining President Lula’s popularity. While farmers benefit, local meatpackers face higher feed costs, and consumers feel the pressure. Analysts predict China’s demand will stay high, driving record Brazilian crop yields and meat exports. Despite inflation risks, Brazil’s agribusiness outlook is bright, with firms like SLC Agricola and JBS poised to profit. The shift in global trade is likely to deepen Brazil’s dominance in China’s market long-term, solidifying its status as a key food supplier.
Source: Reuters/Datamar News