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.