Uruguay observes with concern the Chinese market in a context that is not very positive for the local livestock market: with a drop in exports to what was the country’s main economic partner, China continues buying but does not show recovery in the prices for beef.
“I am not seeing a market signal of price improvement“said the director of Agromeals, Juan Lema, in dialogue with Radio Rural. Although demand is stable—after a few months of decline in purchases from the Asian country—Chinese importers maintain an aggressive stance regarding prices.
In parallel, large markets occupy increasingly limited quotas or can better take advantage of low prices due to the volumes they operate. Such is the case of Brazil, at the supply level, and Australia, which continues to increase its meat exports —although it would not yet be a direct threat to the Chinese market.
Between the authorities and the agro-export sectors, However, the situation of prices. Above all, considering the high duty what pay Uruguay —one of the reasons why he still pursues, despite widespread pessimism, the signing of the Free Trade Agreement (FTA) with China.
“I see a Chinese market that is going to be very important in terms of volume but its logic changes,” explained Lema, pointing out, among other aspects, a very strong change in the composition of importers, with the departure of many companies in recent years. “I think today China “It is much tighter, more sincere to what is happening globally in terms of prices,” he said.
“I see a slow china, I don’t think that in this last third of the year there will be significant changes in terms of prices,” he estimated, and also pointed out that, together with the strong Brazilian supply, they are still maintained. high stock levels.
Usually in October there is a greater volume of purchases prior to the Chinese New Year, but Lema was cautious in his expectations about the movements that may occur in the coming weeks. “China is going to continue being an important market, valuing some particular products, but I find it difficult to have a significant reactivation regarding what is happening today. In the short term and in 2024 I don’t see a change substantial”, he stressed.
The new markets in which Uruguay lands
Given the almost insurmountable obstacles in the negotiations for the FTA and the current context of the livestock market in relation to China, The government continues working to not depend so much on the relationship with the Asian country.
In that sense, it has been a few months since Brazil It has become the country’s main trading partner, although meat is not the star product in this exchange – because the northern country is also an important livestock producer.
Regarding the beef In particular, recently the country has managed to place this product in Mexico —with the participation of 22 refrigerators—, The Savior y South Korea —although, in this case, only minced meat.
Meanwhile, the government actively promotes Uruguayan meat in France, through the Rugby World Cup 2023 that takes place in that country, and in which the local team participates.
2023-09-23 14:13:19
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