MercoPress. South Atlantic News Agency

Uruguayan exports on the rise, report shows

The international price of meat is exceptionally high “mainly due to the greater dynamism of the Chinese market and the cessation of exports by Argentina,” the report said

Beef, meat by-products and wood have boosted Uruguayan exports, which were reported to have grown 17.2% overall in October, it was announced Monday in Montevideo. Meat sales once again reached record figures.

Export applications —including duty-free zones— totalled US $ 897 million in October, which represented an increase of 17.2% compared to the same month in 2020, the Uruguay XXI Institute reported Monday.

Meanwhile, exports from customs -that is outside duty-free zones- reached US $ 782 million last month, a 16.6% growth compared to October last year.

Between January and October 2021, exports grew 31% YoY and 12% above pre-pandemic figures from January to October 2019, according to Uruguay XXI.

In October 2021, beef “set a historical record”, being “once again the main exported item and the one with the greatest impact on the evolution of total exports.” Sales worth US $ 259 million meant a 75% YoY increase.

The favourable evolution that occurred in October is “explained by higher sales of beef, cellulose, meat by-products and wood.” On the other hand, the “products with the greatest negative impact on the variation of the month were soybeans, electricity, rice and pharmaceutical products,” the report said.

Also in October, there was a “significant increase” in the movement of containers in the port of Montevideo, according to the National Port Administration posting on Twitter, with 54,748 containers moved, against 37,055 last year, which represents a growth of 47.74%.

Between October 2020 and October 2021, sales grew 23.7% or 31.3% if exports from duty-free zones are taken into account. This rise is explained by the increase in exports to China and the United States.

China remains Uruguay's main trading partner after an increase of 77.29% due to higher placements of meat, wood, dairy products and fish, among other items.

Uruguay XXI highlighted that ”the international price of meat is at exceptionally high values due to the strong recovery in world demand, mainly due to the greater dynamism of the Chinese market and the cessation of exports by Argentina, one of the largest meat producers in the world. Specifically, during October the export price was 28.3% higher than the same month in 2020.”

The main buyer of this product was China, which accounted for 71% of sales (US $ 184 million), “which meant a variation of 95% compared to the same month of 2020”. The beef was also sold to the European Union (10%), the United States (7%), Brazil (3%) and Japan (2%).

Cellulose sales abroad also rose 30% compared to October 2020. This increase “is exclusively due” to an improvement in the average export price, “which in the last quarter was close to” US $ 650, 63% above its average value in 2020.

Beverage concentrate exports totalled US $ 53 million. Mexico was the main destination with US $ 13 million (29% more than in October 2020), followed by Guatemala (US $ 8 million, 13% above Oct. 2020).

“In the accumulated of the year, sales reached 509 million dollars, 24% higher in year-on-year terms. The positive evolution for the year as a whole responds to an increase in export volumes (17%), which is accompanied by a 7% higher price compared to 2020 ”, the reports indicate.

As for meat by-products, exports doubled compared to October 2020, totalling US $50 million. ”The main destinations were China (51%), the United States (16%), Hong Kong (8%), the European Union (8%) and Russia (7%).”

On the other hand, dairy product sales decreased 6% compared to the same month in 2020; however, the marked growth between January and October is maintained, which was 12%. Brazil was the destination that fell the most (US $21 million in October 2020 to eight million in October 2021, which means a 60% drop), Algeria (-30%) and Cuba (-88%).

“However, the increase (265%) in sales to China stands out, reaching 13 million dollars, and offsets part of the decline in the main markets. The lower sales of powdered milk (-13%) could not be offset by the increase in butter exports (78%), being the only product with a positive impact in the month,” the report says.

Exports to Uruguay's main trading partner grew 77% in October 2021, compared to the same month in 2020, with an amount of US $ 230 million. The main exports were beef, meat by-products, wood, dairy products, fish and seafood.