MercoPress. South Atlantic News Agency

Argentine beef exports down for three months running, with prices dropping 20% since April

Argentina’s Chamber of Meat Industry and Commerce said export volumes fell 11,6% since July, whereas the price fell by 20% from the highest point in April.

During October 2022, beef exports from Argentina fell for the third month running, dropping 3% in volume month-on-month, with sales revenue down 10.4%, according to Argentina’s Chamber of Meat Industry and Commerce (CICCRA).

 So far exported volume dropped by 11.6% from the ceiling hit in July, whereas the price fell by 20% from the highest point in April.

In the tenth month of the year, the average price paid for each ton of beef sold by exporters was US$ 5,031 a ton, 10.4% below September values. On the other hand, China paid an average of US$ 4,252 per ton, down 8.7% less than in the previous month and 17.7% below May.

A similar scenario was experienced in Europe, which paid an average price 29% lower between April and October. On sales to US and Chile, since February prices dropped 31.4% and 15.0%, respectively.

The Argentine meatpacking industry overall exported US$ 265.8 during October, 13.2% less than in September.

In the rich pastures Cañuelas region, cattle prices have remained unchanged for five months, and market consultants point to decline in beef demand from China, beginning last August, as well as a significant drop in prices both in the European and Chilean markets, since the second quarter of the year.

To the foreign markets situation must be added the daily deterioration in Argentine families’ purchasing power caused by an inflation rate that shows no signs of abating and is heading for plus 100%. As a result, live cattle prices both for the domestic market and exports, increased 85,4% well below the three digit inflation.