Trump's tariff threatens trade with leading beef-producing state

Mato Grosso , the largest agricultural powerhouse in Brazil, could lose one of its main trading partners for beef exports if U.S. President Donald Trump maintains the 50% tariff on Brazilian products—an announcement that impacted the country this week.

Following the Republican's announcement, the livestock sector points out that there is a risk that trade relations between the US market and the country's largest meat producer will be hindered by unviable marketing prices. "This tariff removes our product from the competition. The new tax would raise the price per ton of our meat to around US$8,600 , making any sales to the US market unviable," says Oswaldo Pereira Ribeiro Junior, president of the Mato Grosso Breeders Association (Acrimat).

In his assessment, the economic impact demands an immediate response from the Brazilian government to reverse the situation through diplomatic means. "We believe in national sovereignty, but we believe above all in common sense and peaceful negotiation before taking hasty measures that could lead to disastrous results for our economy," he warns.

According to the Mato Grosso Institute of Agricultural Economics (IMEA), the state exported 26,500 tons of beef to the United States between January and May of this year, representing 7.2% of Mato Grosso's exports. Revenue reached US$102 million, with the ton selling for an average of US$3,842.

Mato Grosso breaks slaughter record

In June, Mato Grosso recorded a record slaughter volume. According to Imea, the state's meatpacking plants processed 613,150 head of cattle throughout the month. The state remains a leading player in the national livestock industry, boasting the largest cattle herd in the country, with 32.8 million head, and accounting for 20.5% of Brazilian beef exports .

In exports, Mato Grosso shares the lead with São Paulo. The states that exported the most beef in the last quarter were São Paulo, with 145,000 tons, accounting for 21.7% of the total; Mato Grosso, Goiás (12%) and Mato Grosso do Sul (11.1%).

In the same period, Mato Grosso's foreign beef sales reached 68,080 tons in carcass equivalent (TEC), according to Imea. Export revenue totaled US$289,760 in June.

This result boosted the accumulated total for the first half of 2025. In total, the state raised US$1.46 million from beef exports. In terms of volume, Mato Grosso shipped 368,810 tons in the first six months of the year—a 5.72% increase compared to the same period in 2024.

Beef joins the group of the 10 most exported products to the USA

According to the American Chamber of Commerce for Brazil (Amcham Brasil), Brazilian beef exports rose to tenth place on the list of top products exported to the United States in 2024, replacing partially processed wood. Beef sales totaled US$943 million in 2024, representing a 103.5% increase compared to 2023.

Export volume followed this upward trend, registering a 93.8% increase. According to the Amcham report, there was increased demand in the US, which was compounded by a decline in cattle slaughter in the United States itself.

The decline in beef production in the US, in turn, was a direct consequence of the drought that severely affected the quality of pastures, especially in the Midwest region, and resulted in the reduction of the American herd, according to data from the United States Department of Agriculture (USDA).

Beef is cited as one of six manufacturing products that experienced significant growth among the top ten items exported to the United States, reinforcing the diversity and strength of the Brazilian industrial sector in trade with the United States.

The recipe for success of Mato Grosso beef

While other states adapt to global requirements, Mato Grosso operates within traceability standards with investments in technology and best practices. The ability to trace the origin of a product from the farm to the end consumer provides a competitive advantage .

"Mato Grosso holds a prominent position because it's the state with the largest herd, with highly-technical producers and properties capable of delivering a high volume of young, heavy animals. It also boasts excellent logistical facilities. Thanks to all these productive factors, Mato Grosso is able to export to over 80 markets ," says Bruno de Jesus Andrade, director of the Mato Grosso Meat Institute (IMAC).

One in every five tons of beef exported by Brazil comes from slaughterhouses in Mato Grosso. According to the institute, more than 80% of production is traceable. The requirement will only become mandatory in the country in 2032, and the early implementation has opened strategic doors for the state of Mato Grosso, which has consolidated trade partnerships with China, the United States, the United Arab Emirates, and, more recently, the Bahamas.

"Traceability of Mato Grosso's livestock has existed for many years. Over 99% of properties have geolocation, meaning we know exactly where they are. In addition, we have a permit that is required for any animal movement. It's mandatory even if it's from one property to another, owned by the same owner," says Francisco de Salles Manzi, technical director of the Mato Grosso Breeders Association (Acrimat).

If Mato Grosso were a country, it would rank ninth among the world's largest beef exporters , according to the USDA. In 2024, the state produced 1.7 million tons, slaughtered 6.6 million animals, and accounted for 17.1% of national production, according to data from the Brazilian Institute of Geography and Statistics (IBGE).

Largest beef producers in the world:

• United States: 12.3 million tons
• Brazil: 11.8 million tons
• China: 7.8 million tons
• European Union: 6.6 million tonnes
• India: 4.6 million tons
• Argentina: 3.1 million tons
• Australia: 2.6 million tonnes
• Mexico: 2.3 million tons
• Russia: 1.4 million tons
• Canada: 1.3 million tonnes

Source: USDA, 2025

Mato Grosso beef byproducts gain ground in the European pharmaceutical industry

Between January and May, 7.3 million head of cattle were slaughtered, with May seeing a notable increase, when more than 553,000 steers were processed. Further increases are expected, driven by the opening of markets and the diversification of exported products.

"At this moment we are experiencing an increase in the price of beef cattle, possibly reaching a time when the supply of animals for slaughter will be reduced and this should continue for one or two years and then we will have a rebuilding of the herd and we will have an increase in the supply for slaughter", explains Andrade.

Last month, the Eurasian Economic Union—a bloc formed by Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan—authorized the import of Brazilian bovine byproducts for pharmaceutical use. Retina, scapular cartilage, ovaries, and other parts are now included in the export list.

"The Eurasian Economic Union represents a market of 185 million people and has been increasing its demand for pharmaceutical ingredients of animal origin. This new authorization is part of the strategy to diversify our export portfolio, aiming to reduce dependence on a few purchasing countries and expand the global reach of our products," says the director of IMAC.

Although the bulk of shipments are frozen and chilled meat, the export of byproducts and offal has increased producers' income. "It ends up increasing the value of local production. It's an additional source of revenue for meatpacking plants and producers. It's not the main source, but it's significant," he adds.

Mato Grosso shipped 137,000 tons of beef in the first quarter of 2025, generating revenue of US$654 million. (Photo: Leandro Balbino/Imac Archive)

The National Plan for Individual Identification of Cattle and Buffalo, launched in December 2024, requires the start of monitoring each animal by the year 2032. According to the Brazilian Confederation of Agriculture and Livestock (CNA), less than 1% of the herd is tracked individually: the IBGE indicates that Brazil has 239 million head of cattle.

The CNA cites three obstacles: the cost of technology, the lack of standards across states, and producers' fears about data use . "We would like the plan to be voluntary. But we believe the requirement for it to be gradual, with time to adapt to the system, is plausible. That doesn't mean it will take the entire proposed time," predicts Francisco Manzi, technical director of Acrimat.

In Mato Grosso, there are 129,000 properties, according to Manzi. "It's crucial that it's done correctly and safely, so that producers can adapt. Preempting the idea of ​​getting ahead isn't productive; it needs to be done in an organized manner."