Could China-Brazil beef traceability plans be a model for other countries to follow?
19 Jul 2024 --- When China, the world’s largest importer of beef and Brazil, the world’s largest exporter, recently announced plans to launch a beef traceability pilot, some industry insiders interpreted the move as a positive signal to the global market of their willingness to tackle nature and climate-related issues.
Commitments in recent years to climate change and agricultural causes signify a growing recognition by China and Brazil about the impact that their exporting and importing activities are having on the environment, a stance that was arguably not as visible historically.
Last year, China imported 2.74 million tons of beef, more than 40% of which came from South American producers. Meanwhile, Brazil is responsible for around 23% of global exports.
These large volumes come with environmental costs. Brazil’s beef exports in 2020 were linked to 340 million tons of greenhouse gas emissions through deforestation in the previous five years.
A “beef alliance”
Cattle ranching — the practice of raising grazing cows for meat, dairy, leather and other cow-based products — in Brazil is the number one cause of deforestation in nearly every Amazon country and accounts for around 80% of current deforestation, according to WWF.
As the largest beef importer, China is exposed to this deforestation and conversion from Brazil.
This impact, resulting from their trading dependencies, makes the desire of the two nations to deepen their relationship and improve their supply chains a logical move.
Not much is known about this latest news of a beef traceability pilot. Chinese state media reported the plan after China’s State Administration for Market Regulation met with Brazilian entities to explore strategies to achieve greater transparency in the beef supply chain.
However, one of its reported objectives is to create a cross-border tracking platform to help support a unified global system to improve traceability and combat counterfeiting in the beef industry.
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Brazil is responsible for around 23% of global beef exports.ading the way
Jack Hurd, executive director at Tropical Forest Alliance, tells Food Ingredients First that this type of cross-sector and cross-country collaboration between the two countries is crucial and could be an example for other nations.
“Companies must work with local governments, smallholders and indigenous people to ensure sustainable commodity production and tackle systemic issues,” he says. “Collaborative bilateral and multilateral relations must be strengthened to cultivate a sustainable beef trade, which will ultimately transform the producing landscape.”
Hurd explains that the countries’ collaboration extends beyond beef to the recent “first of its kind” Deforestation and Conversion-Free (DCF) soybean procurement pilot, which the World Economic Forum and Tropical Forest Alliance facilitated.
The agreement ensures that deforestation and conversion-free soybeans will be supplied to China from Brazil, one of the world’s largest soybean producers and exporters.
“The pilot will mobilize more companies to shape global agricultural commodities toward a more sustainable, resilient and responsible model,” he says.
The hope is that as the European Union Deforestation Regulation slowly comes into force, the pilot will provide a blueprint for businesses to translate their deforestation-free commitment into actions.
Sustainability goals
Talks of a “beef alliance” first emerged last year, and in April 2023, the countries confirmed they had formed an alliance to combat climate change. In recent years, the countries have increasingly acknowledged that climate and agricultural issues need to be effectively tackled.
China and Brazil have increasingly acknowledged that climate and agricultural issues need to be effectively tackled.
In a joint statement, they expressed a need “to combine urgent climate response with nature conservation to achieve Sustainable Development Goals (SDGs)...” The two countries also outlined plans to tackle illegal logging and deforestation by enforcing laws banning illegal imports and exports.
At the same time, the two BRICS nations also called out developed countries as bearing the “historical responsibility for greenhouse gas emissions.” They stressed that developed nations should take the lead in scaling up climate actions and provide climate finance and support for developing nations.
Data will be key for their latest beef traceability pilot plans. Complex supply chains, data shortages or poor data have often been barriers to delivering effective projects related to deforestation around the world. Understanding whether a company or country is contributing to deforestation hinges on being able to link a commodity or product to its origins.
This is what China and Brazil will have to achieve to make their pilot a success.
By Sade Laja
