MercoPress. South Atlantic News Agency

Russia becomes Uruguay’s main client for beef in first half of 2010

The big barbeque at Uruguay’s stand in the Shanghai World Expo

The Russian Federation became at the end of the first half of the year, Uruguay’s main client for beef compensating weaker demand from the European Union and other important markets, according to the latest data from the country’s National Meat Institute, INAC.

Between January and July 2010, Uruguayan processors exported 74.535 tons of beef to Russia compared to the 46.594 tons of the same period a year ago. This represents a 60% increase in sales in spite of the softer prices offered by Russian buyers.

In the first half of last year, the Russian Federation represented 22.1% of Uruguay’s overseas sales of meat and now stands at 31.7%, and is estimated could further increase. This helped compensate the fall in demand and prices from the European Union, under strain because of the Euro crisis.

In the first half of this year the EU acquired 45.758 tons of Uruguayan meats, 22% less than in the same period a year ago (58.639 tons).This means the EU share has dropped from 27.8% to 19.5%. Another important market, Nafta (US, Canada and Mexico) totalled purchases of 32.314 tons, virtually unchanged from the 32.407 tons of the same period a year ago.

The United States and Canada which make the bulk of Nafta’s demand basically purchase “trimmings” which are the cuttings from de-boning and are in great demand for making hamburgers. The US took 19.975 tons and Canada, 12.273 tons during the first half of this year.

Mercosur is Uruguay’s fourth important market for beef exports. Argentina has become an excellent market for barbeque ribs, while Brazil absorbs the most expensive cuts. Overall sales to Mercosur reached 18.569 tons compared to 10.795 tons in the first half of 2009, which means a 72% increase.

Chile also proved a bull market for expensive beef cuts. Exports in the first half of 2010 totalled 11.005 tons compared to the 4.996 of the same period in 2009, which represents a 120% increase.

China is also becoming a promising market and Uruguay has recently obtained approval for exports of meat with bone. Besides in the Uruguay stand at the Shanghai World Fair there is a giant barbeque which has turned into a huge success, with booking needed days ahead.

Most of trade with China is done through Hong Kong. So far the bulk of exports to China have been offal, but Uruguay has a long trade relation with the world’s second largest economy, basically wool exports, and is looking forward to something similar with different meat cuts.