Brazilian meatpackers fall after China's move to curb beef imports

About this update from Mbrf Global Foods Company S.a.

Shares in Brazilian meatpackers fall on Friday after China announced additional tariffs on beef imports. ** Minerva BMFBOVESPA:BEEF3 plunges over 6% and MBRF BMFBOVESPA:MBRF3 declines more than 3% in mid-afternoon trading in Sao Paulo, while U.S.-listed JBS NYSE:JBS is down more than 1%.** On Wednesday, China announced a 55% tariff on beef imports that exceed certain quota levels from suppliers including Brazil, Australia and the U.S. in a move to protect its domestic industry.** "Overall, we expect limited impact in the very short term - i.e., as long as exported volumes remain within the established quotas," analysts at Itau BBA write.** "Minerva is the most exposed company to this week’s news, with about 15% of its revenues tied to China," they said, noting a rise in the company's exports to the U.S. could soften the impact.** Minerva and MBRF declines are among the largest from stocks that are part of Brazil's benchmark index Bovespa BMFBOVESPA:IBOV, which is down some 0.5%.** The Brazilian stock exchange did not open on December 31 and January 1.

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