JBS SA, the world’s largest meat producer, surged after China officially removed an embargo on beef imports from Brazil, the world’s biggest beef exporter. Marfrig Global Foods SA and Minerva SA also posted strong gains.
JBS shares jumped 4.3 percent at the close in Sao Paulo, the second-most of companies on Brazil’s benchmark Ibovespa index. Marfrig rose 3.2 percent, and Minerva increased 6.4 percent.
Premier Li Keqiang announced Tuesday that China will resume beef imports from Brazil that had been suspended since December 2012 after a cow tested positive for mad-cow disease, Brazil’s government said in an e-mailed statement. China’s government probably will allow beef exports from 26 Brazilian plants by June, which could represent about $520 million in sales. JBS, parent to Greeley-based JBS USA, has immediate clearance for exports from five plants.
Chinese beef imports accounted for less than 2 percent of total exports from Brazil last year. Hong Kong was Brazil’s second-largest beef buyer, representing about 20 percent of shipments.
