China launches anti-dumping investigation into imports of Brazilian broiler chicken

China launched on Friday an anti-dumping investigation into imports of Brazilian broiler chicken in another blow for the South American country’s meat industry and threatening over US$1 billion of exports annually.

The investigation comes after a complaint from China’s domestic industry that Brazil, its top supplier of chicken, has been selling its broilers below market value.

Any move to penalise imports would hurt Brazil’s powerhouse protein industry which has already been tarnished this year by a food safety scandal.

Brazil accounted for more than 50 per cent of broiler product supplies to China, the world’s No 2 poultry consumer between 2013 and 2016, China’s Commerce Ministry said in a statement. It accounted for almost 85 per cent of frozen chicken imports, almost 600,000 tonnes valued at as much as US$1.23 billion, according to Chinese customs data.

“The announcement of the investigation itself works like a barrier because the potential imposition of anti-dumping charges could constrain Chinese importers,” said Vera Kanas, a lawyer specialising in foreign trade disputes.

“They will not want to close purchases knowing that charges may apply later,” she added. Kanas said the investigation involves 27 Brazilian companies including BRF SA, JBS SA and several privately owned exporters.