China, the world’s largest beef importer, and Brazil, the biggest supplier, are launching a pilot scheme to enhance the sustainability of beef production, state media reported Wednesday. China’s State Administration for Market Regulation is collaborating with Brazilian institutions to develop a cross-border traceability platform to ensure supply chain transparency and combat counterfeit beef.

This initiative is part of China’s shift towards greener supplies, driven by policy signals and investor pressure. However, traders and analysts caution that higher costs and logistical challenges may limit demand for sustainable goods.

China imported 2.74 million metric tons of beef in 2023, with over 40% coming from Brazil, where cattle ranching is a major driver of tropical deforestation and greenhouse gas emissions.