MercoPress. South Atlantic News Agency

Argentine beef exports grow but demand from China takes downward path

Israel turned out to be the second most relevant destination for Argentine beef exports in August 2022, behind China

Argentine beef exports have grown interannually but demand from China is 20% lower than in July and decreasing, with a marked downward trend in prices, according to a report from the Argentine Beef Exporters (ABC) Consortium in Buenos Aires.

In the first 8 months of 2022, shipments of beef grew 9.4% compared to the same period of 2021 and almost 20% in August compared to the same month last year, but fell 5% from July, the study also revealed.

On the other hand, shipments to China, Argentine beef's main destination, fell by 20% compared to July. The Argentine Government allowed 15% more exports, which might result in a positive impact at the end of this month.

“In relation to August 2021, the volumes exported are 19.9% higher; while the value obtained has been 32.3% higher. The accumulated for the first 8 months of 2022 reveals that foreign sales of refrigerated and frozen beef were for 417.3 thousand tons product weight; for a value of approximately US$2450 million. Compared to the first 8 months of 2021, the volumes exported are 9.4% higher; while the value obtained has been 43.7% higher,” ABC Chief Mario Ravettino said.

Shipments of refrigerated and frozen beef in August reached a volume of around 56.7 thousand tons of product weight, with a value of around US$329.2 million. Compared to July, volumes shipped showed a 5% decrease, while the value obtained fell by 4.7%.

The average export price of chilled and frozen beef was 0.3% higher than in July, and 10.4% above the average for the same period of 2021.

“However, there is a persistent downward trend in prices in the main destinations from May onwards; and the average US$ 5,807 per ton is US$500 below the maximums registered last April,” ABC noted.

The ABC report also pointed out that there was a “sharp drop” of 20% in boneless frozen beef shipments to China. “From 41 thousand tons shipped in July, in August shipments fall to 32.8 thousand tons within a context of a marked downward trend in prices in this destination.”

China remained the main export destination, both for August and for the accumulated first 8 months of the year. “In the last month, 8.7 thousand tons of beef on the bone and bovine bones from deboning were shipped to China, for a value of US$15.1 million and about 32.8 thousand tons of boneless beef, for a value of US$181.4 million”. Thus, the Asian country represented 73% of the volumes exported in August 2022; and 77% of the accumulated in the first 8 months of the year.

The average price of boneless meat sales to the Asian country in August was “slightly above” US$5500 per ton, marking “a clear downward trend since the maximum of U$S5900 obtained last May”.

Thus, exports of beef offal and preparations totaled a volume of 8.8 thousand tons in August, for a value of US$ 20.4 million. The average export price of these products was slightly above US$ 2,300 per ton, with “peaks close to” US$ 4,500 for bovine tongues.

ABC also highlighted the recovery of chilled boneless meat shipments to Chile. “The 2,500 tons shipped in August almost equaled the volumes of June and July added together.”

“Mainly, the effect of the dispatches for the fourth quarter window of the 481 Quota is observed, which doubled the volumes shipped to the Netherlands in August, compared to July,” ABC also said.

”There were significant volumes of frozen Kosher to Israel, over 3350 tons in August (2288 in July) at an average price of over US$ 8,000 per ton. Between chilled and frozen products, Israel turned out to be the second most relevant destination for Argentine beef exports in August 2022, with more than 4600 tons shipped.”

The Consorcio de Exportadores de Carnes Argentinas is a non-profit organization created at the end of 2002 in response to the needs of the beef industry to promote the prosperity of the beef agro-industrial complex by adding maximum value to Argentine beef, thus contributing to the economic and productive development of the Nation.

The Consortium also seeks to preserve the comparative advantages conferred by a herd of more than 50 million head, raised in natural conditions, preserve the environment and animal welfare, and to watch over the fulfillment of the most demanding standards to offer Argentine beef to the world markets.