The prices of meat that is exported to China suffer a collapse never seen before. The latest data provided by exporters indicate that the garrón and brazuelo had a drop of 50% compared to the maximum that they had achieved a few months ago.
These days you pay $4,000 a ton for those beef cuts that are highly demanded by China, when they came to be worth twice as much. The same drop occurs with cow cut sets, which are priced as low as $3,000 per ton.
To the low Chinese demand, a consequence of the fact that the level of economic activity does not pick up, is added the high supply of meat from Brazil, Argentina and Australia.
Between China and the exchange rate delay: Meat exports grow 14%, but the income of dollars generated by that chain falls sharply
The weakened internal demand for meat in Brazil generates higher exportable balances and that is why in May that country sent 200,000 tons to international markets, most of which ended up in China.
Argentina exported 65,000 tons of product weight in May, of which almost 79% went to China. In addition, Australia is also placing larger volumes of meat there, according to meat industry analysts.
“The business became very glassy for us,” said an exporter, and clarified that the operations with China had been doing at a loss. The prices of the “cows” category, which are the raw material of the business, had an increase of just over 20% in the last year, but the drop in the price of the ton that is exported to that destination is so important that even This is how you operate counter-margin.
Added to these factors typical of any business are the distortions imposed by the government and that subtract income from the production chain. There appear the export duties (9% for beef) and the exchange rate split, which deepen the damage to companies due to the visible exchange rate delay in income.
In this context of economic losses, the authorities also came out to demand that the industries provide the meat promised in the price agreement, which generated more concern and tension among the businessmen who had their shipments stopped in recent days.
2023-06-26 12:37:13
#Red #lights #beef #business #Due #collapse #prices #exported #loss #China #destination
