Brazilian beef exports are set to drop after the government banned exports to China after BSE concerns arose. Exports to China had already fallen 9.8% year over year in 1Q and Brazil’s ranchers were already facing increased competition in Asia. JBS, the largest exporter with 32.5% of shipments to China, had done better than average with a 34.2% increase in exports in 1Q. While not directly linked to the BSE case, JBS and other exporters including Marfrig may nonetheless face marketing and regulatory challenges.