May 17, 2022 1:57 pm

Last year meat exports were lost for up to US$700 million

Last year beef exports fell by 9% in volume. Thus, 805,000 tons of beef were sold abroad. Meanwhile, in foreign currency they totaled US$2,784 million, some US$60 million more than in 2020.

The data comes from a report by the Consortium of Argentine Meat Exporters (ABC), which stated that if the improvement in prices had been transferred to higher exports, which were under the effect of the Government’s stocks, value sales could have expanded another $300 million to $700 million.

“It is evident that if this recovery (in prices) could have been transferred to beef shipments, the total turnover of the sector would have increased between 300 and 700 million dollars, without taking into consideration the expansive factor that can be seen in the evolution of our competitors, which unfortunately was wasted”, highlighted ABC.

According to the entity, Last May, foreign sales of the product “to China -the largest buyer- had registered their historical maximum and reached 52,000 tons, although it should be noted that this was the result of a record volume of bone-in frozen meat.”

Foreign sales of beef

However, based on the restrictive measures implemented by the Government that month, that figure fell “to 28,000 and 25,000 tons in June and July, respectively, to range between 30-36,000 tons in the following months, with a relatively stable share of the bone-in item of between 8 and 9 thousand tons.”

“The negative effect of the verified drop in volume it was attenuated by an upward trend in mean values; in December it was 5749 dollars, thus matching the maximum that had been registered towards the end of 2019″, Indian.

In this context, Mario Ravettino, president of ABC, pointed out that in 2021 A total of 424,000 weight tons of frozen meat products equivalent to 587,000 weight tons of beef were destined for China, “almost three-quarters of the total Argentine exports of bovine meat.”

Argentine beef importing countries
Argentine beef importing countries

“Despite the improvement in the average value, the total amount (to China) registered a decrease of 40 million dollars, compared to last year and almost 400 million dollars in relation to 2019”, Ravettino said.

According to the entity, China has continued to lead the purchases of bovine meat, although it gave up considerably in its participation: “It averaged 80% before the restrictions applied, reaching a floor of 64% in September and staying in the order of 70% to recover in the last month of the year”.

Beef exports to China
Beef exports to China

“In the last months of 2021, the greater participation of the tariff quotas, the relative fall of China within the total and the increase in international prices, due to the particular situation that was experienced in the beef market, before the closure to Brazilian meats imposed by China from the beginning of September, which was maintained until mid-November, have reduced the impact of the restrictions applied on the exportable volume”, reported the organization.

“The average tonnage decreased 15% and 25% compared to the average of the first months of the current year and the second half of 2020, respectively, but had an improvement of more than 30% in the average price compared to the same periods. . It is evident that if this recovery could have been transferred to beef shipments, the total turnover of the sector would have expanded between 300 and 700 million dollars, without taking into consideration the expansive factor that can be seen in the evolution of our competitors, which unfortunately was wasted”, he added.

In another section ABC stated: “The improvement in prices in key destinations such as China and the European Union (EU) has been combined with the greater incidence of tariff quotas, which include the most precious cuts, helping to mitigate the effects of the fall in the volume exported” .

Para Ravettino, the slight increase registered in the last month of last year, when exports totaled 46,000 product weight tons equivalent to 65,000 beef weight tons, 3% more than November, “It occurred despite the significant drop experienced by the chilled meats category, which was offset by a recovery in frozen meats.”

“Shipments of chilled meats showed a lower participation of quotas to the European Union, which reflected the lower demand after the seasonal peak due to the year-end holidays. In the opposite direction, sales of frozen meats increased both in the Chinese market and in Israel,” he said.

In this sense, the ABC pointed out that this modification in the conformation of the exports of December determined “that the total value of 257 million dollars registered a decrease of 2.5% with respect to last November”.

According to the study, in 2021, shipments of chilled meats totaled 94,000 tons worth of US$786 million, 20% above the same period in 2020.

According to the entity, in the month of May 2021, “exports of frozen meats exceeded 54,000 tons of product weight for a value of US$200 million, around 15% of this amount was bone-in meats.”

“China represented 95% of the total volume of frozen meats and, practically, the entire category that contains frozen products with bone, whose volume was the highest since the possibility of certifying these products was enabled. Exports of bone-in frozen meats were the most dynamic item, to the point that in the first months in which restrictive measures were not applied, they compensated for the decrease in the tonnage of deboned frozen meats”, projection.

Comments (0)

Leave a Reply

Your email address will not be published.