China’s importers of Brazilian chickens must pay deposits of up to 40pc under new anti-dumping measures
Commerce ministry intervenes after investigation finds growth in imports from Brazil and falling domestic prices have caused serious damage
China will impose temporary anti-dumping measures on Brazilian broiler chickens from June 9, the commerce ministry said on Friday, after finding in a preliminary ruling that its domestic industry has been substantially damaged by the imports.
Local firms buying broiler chickens – chickens bred for meat production – from Brazil will be required to pay deposits ranging from 18.8 per cent to 38.4 per cent of the value of their shipments, the ministry said in a statement. The measures cover products supplied by top Brazilian exporters JBS and BRF.
Brazil accounted for more than 50 per cent of broiler products supplied to China, the world’s second biggest poultry consumer, between 2013 and 2016, the commerce ministry said when it announced a probe of the imports last August.
“During the period of damage investigated, the quantity of imported products and market share from Brazil have continuously increased, and the prices of similar domestic products have been drastically reduced, causing serious damage to domestic industries,” the ministry said on Friday.
It added that despite a positive trend in some areas of the domestic industry, selling prices and profits fell, while stocks increased, with the industry losing money. Dumping is the practice of selling into a market at below market prices.