Argentina’s Beef Exports Surge in First Half of 2023 Despite Price Sacrifice

The data corresponds to the first semester of 2023. The achievement was not free, since the country gave in the price to maintain its position in the international market.

In a challenging regional context, Argentina managed to stand out as the only Mercosur country that experienced an increase in its beef exports during the first half of the year. However, this achievement has not been free, since the country had to give up the price to maintain its position in the international market. Thus, despite facing regulations and an unfavorable exchange differential, the national meat industry found ways to stand out and increase its shipments abroad.

According to data recently published by the National Institute of Statistics and Censuses (Indec), AArgentina registered shipments of 327.2 thousand tons of beef from January to June 2023. This figure represents an increase of almost 9 percentage points compared to the same period of the previous year, which is equivalent to approximately 26 thousand additional tons exported. Meanwhile, other countries such as Brazil, Uruguay and Paraguay have experienced setbacks in terms of volume shipped.

The increase in Argentine exports has been the result, in large part, of a greater supply of beef generated by higher slaughtering, due to difficult weather conditions, particularly drought. Although the local market absorbed a significant part of this increased supply, exports have also benefited by capturing a greater exportable balance.

However, this growth in exports has come at a cost. To maintain its competitiveness in the international market, Argentina had to adjust the price of its shipments. During the first semester of the year, the average value of the ton shipped was USD 4,274, which represents a reduction of 27.5% compared to the same period of the previous year, when USD 5,900 per ton was achieved. This sacrifice in prices has been necessary to increase the country’s participation in the global market.

Despite the decrease in revenue per unit, the increase in exports has allowed the Argentine meat industry to cushion rising operating costs, in a context of high inflation and economic difficulties.

However, according to a recent report by Rosgan -the livestock market of the Rosario Stock Exchange-, there is concern that maintaining a long-term price adjustment strategy could affect the profitability of producers and exporters, putting at risk the sustainability of this growth. Therefore, it is essential that government and industry players work together to address trade barriers and regulations that hinder Argentina’s competitiveness in the international market.

2023-08-06 13:21:49
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