China will impose anti-dumping duties on purchases of broiler-chicken products from Brazil, the country’s top supplier, after an almost 10-month investigation found surging imports damaged the domestic breeding industry.
Importers will pay a deposit of as much as 38.4 percent to Chinese customs on purchases from June 9, the Ministry of Commerce said in a preliminary ruling, citing initial findings from an investigation that started in August. Supplies from BRF SA are subject to a 25.3% rate and an 18.8% duty will be imposed on goods from JBS SA subsidiaries, according to a list published by the ministry. BRF and JBS are Brazil’s top chicken producers.
China’s imports of frozen chicken and products from Brazil fell 22 percent in 2017 to 382,052 metric tons worth $876 million, according to Chinese customs data. In February, China ended extra duties on U.S. chicken imports, but purchases remain banned due to bird flu concerns.
Shares of chicken industry-related companies declined. Guangdong Wens Foodstuffs Group Co., China’s largest producer, fell 4.3 percent. DaChan Food Asia Ltd. dropped 3.9 percent. Fujian Sunner Development Co. declined 2.2 percent.
