:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/grupoclarin/3OGWQIN36ZCPHITB7RUWKT6RFM.JPG "“Argentina’s Beef Exports Remain High Despite Falling Prices and Changing Markets”")
Argentine beef exports remain high, representing 27% of total demand in the first two months of the year. In February, 73 thousand tons (beef with bone) were shipped, 8% more than the same month last year, with a turnover of 211 million dollars, 22% less than the same month last year.
In the first two months of the year, 76% of what was exported went to China, 8% to Israel, 8% to the European Union (including the United Kingdom), 4% to Chile and 3% to the United States. . The average export price for January-February, about US$ 3,590 per ton of beef pesos, is 28% below the same period in 2022.
In the first months of the year, exports to China fell, and shipments to Europe, Israel and the United States gained ground. In the last twelve months, shipments of beef totaled 928 thousand tons of beef weight, 27% more than the twelve months ending in February 2022.
Exports remain relatively high, without reaching the levels achieved in last September-October, but average FOB prices, greatly influenced by the sharp drop in income to China, have fallen sharply, determining that the entry of dollars to Argentine livestock , which averaged 345 million dollars per month in the May-July quarter of last year, today does not exceed 230 million dollars. A significant fall that is reflected in the real prices of cattle, especially that of the cow.
Argentine meat: China did not improve the values paid
After the episode of BSE (mad cow disease), Brazil has resumed – after four weeks – its beef exports to China, with shipments that before the suspension showed a trend of 100 thousand tons per month.
Chinese importers were confident at all times that the suspension would not last more than a few weeks, and despite the lack of Brazilian meat, the amounts paid to Argentina, Uruguay or Australia did not improve in the meantime. There was a very timid initial improvement in values that later cooled down.
Despite the fact that Chinese beef imports do not currently reach the record volumes of the second half of last year – in August they reached 270,000 tons – purchases from the Asian giant continue to be very high: in last January–February China imported 423 thousand tons of beef, 37% more than in the first two months of last year and 6% more than in January-February 2021. The values paid for the main cuts or set of cuts are now 30% below mid last year.
The United States Department of Agriculture (USDA) estimates Chinese beef imports for this year at 3.5 million tons; Considering the smuggling from Vietnam and the meat “introduced” from Hong Kong, China would import a total of 4 million tons of beef in 2023, representing 33-35% of the world demand for beef. Ten years ago, China and Hong Kong together imported only 880,000 tons.