China has approved three Brazilian meat processing plants to resume beef exports to China, which were suspended in 2025, the Brazilian Association of Meat Exporting Industries (Abiec) announced on Wednesday.

The decision was announced after a meeting between Brazilian and Chinese authorities in Beijing, Reuters reported. Abiec chairman Roberto Perosa said the plants allowed to resume exports included the JBS Group's Mozarlandia plant. JBS is the world's largest meat processor.

The association said in a press release: "This move is an important achievement for the Brazilian meat industry and enhances Chinese confidence in Brazil's health system and the quality of Brazilian beef."

Bank of America analysts Isabella Simonato and Julia Zaniolo note in a report that Brazil's meat exports have increased in early 2026, but growth could be limited for the full year. Brazil's beef exports rose 20 percent from January to March this year. Chicken exports grew by 5 per cent, even from a higher base, while pork exports grewed by 15 per cent.

This growth momentum continues the expansion of the past decade. In 2025, Brazil's meat exports will reach a record 9.4 million tons, with an average annual growth rate of nearly 5%.

"The strong export performance underscores the close balance between global supply and demand, and Brazil is well positioned as an important export market." Simonato and Zaniolo stated in their report.

China remains the main driver of demand, especially for beef. In March, the price of beef reached $5.83 per kg, compared with an average of $5.58 per kg in the quarter, a 15% year-on-year increase.

Of note is China's import quotas. At the end of 2025, China will impose a 55 percent tariff on beef imports from countries such as Brazil, Australia and the United States if the volume exceeds the prescribed limit.

The total quota for 2026 is set at 2.7 million tonnes. Brazil received the largest share, accounting for 41.1 per cent, equivalent to 1.1 million tons. Argentina and Uruguay followed closely, with 19.0% and 12.1%, respectively.

As of March, about 43 percent of Brazil's annual quota had been used, according to Bank of America. "The amount suggests that the quota could be fully used up between August and September." Analysts said.

The restrictions have a huge impact on Brazil's beef industry. Brazil exported 1.7 million tons of beef to China in 2025, equivalent to 48.3 percent of its total exports, the report said, citing data from Abiec.

Profit margins across industries continued to come under pressure in the first quarter despite strong demand and higher dollar prices. Bank of America cited rising production costs as the main reason, especially in the livestock sector.

Brazilian cattle prices rose 5.8 percent year-on-year and 6.3 percent month-on-month. As a result, the profit margin for beef exports fell by nearly 5 percentage points over the period.

The situation in the chicken industry is more balanced. Feed costs, which account for 63 per cent of total costs, fell 9 per cent in the quarter, helping to maintain a more stable margin.

"Despite the increase in US dollar prices, the appreciation of the Brazilian real and rising costs are putting pressure on margins, particularly in the beef industry," the report notes.

Meat prices have risen along with abundant grain supplies. Brazil's soybean exports rose 6 percent to 29.6 million tonnes in the first quarter, while maize exports rose 15 percent.

During the same period, China imported 16.2 million tons of Brazilian soybeans. This volume was down 5 per cent year-on-year but up 27 per cent month-on-month, largely due to seasonal fluctuations during the harvest season.

For U.S. banks, the challenge is to maintain this pace of growth at a higher base and with greater risk. The bank identified four areas of concern: China's restrictions, Brazil's livestock cycle, the rebalancing of global chicken supply, and the possible logistical and demand impact of the Iranian war.

The report assesses that Brazil remains a core player in the global food supply, but is entering a cycle that is less dependent on margin expansion and more focused on operational efficiency and risk management.