In a dramatic shift driven by tightening domestic supplies, Brazil has overtaken Australia as the leading supplier of imported beef to the United States for the first time in modern trade history.
Brazil’s beef exports to the U.S. reached 48,000 tonnes in April 2025, up sharply from just 8,000 tonnes a year earlier. The surge was largely due to exporters racing to fill the U.S.’s limited 65,000-tonne Most Favoured Nation (MFN) quota early in the year, enabling them to avoid the steep 26.4% out-of-quota tariff. Brazilian beef entering the U.S. after the quota was filled—by mid-January—is subject to a total tariff of 36.4%, factoring in a recent 10% reciprocal tariff.
Despite this, Brazil’s beef has remained competitively priced, often trading 9–10 U.S. cents per pound below Australian beef due to lower production costs. While large American fast-food chains like McDonald’s continue to source beef from Australia and New Zealand, smaller chains and value-added meat processors have increasingly turned to Brazilian imports to manage costs.
Australia, although displaced from the top spot, continues to post strong export volumes to the U.S., shipping 38,431 tonnes in May—up 23% year-on-year. Australian beef benefits from a substantial 448,000-tonne tariff-free quota under the 2005 U.S.-Australia Free Trade Agreement, though it is still subject to the 10% reciprocal tariff.
The rise in Brazilian exports has not significantly reduced Australian volumes, indicating the increase is supplementing rather than replacing existing imports—an outcome reflective of a U.S. beef industry grappling with record cattle prices and reduced slaughter volumes.
Meanwhile, broader trade developments—such as Brazil’s new FMD-free status, potential access to Japanese and South Korean markets, and evolving U.S.-China negotiations—suggest continued volatility in global beef trade dynamics. As competition from lower-cost exporters grows, Australia’s focus on premium, safe, and traceable beef remains central to its long-term export strategy.
