MercoPress. South Atlantic News Agency

Uruguayan exports drop again in June

Sales to Argentina fell by 60%, the study showed

Uruguayan overall exports fell sharply in June for the second straight month this year, as reported in Montevideo. The new decrease in foreign sales “was mainly explained by the negative variations in soybean and beef sales.”

Uruguayan exports, including duty-free zones, totaled US$ 954 million in June, a 31% drop from the same month in 2022, according to the Monthly Foreign Trade Report released by Uruguay XXI. In May, the year-on-year decrease was also 31%.

Cellulose was the main export product in June and had a 20% increase compared to 2022. “This is largely due to the contribution of the new UPM Paso de los Toros mill, which has exported 72,000 tons since it started operations,” the report read.

Meanwhile, beef sales fell 39% compared to June last year. ”The lower demand from the main destinations (China, the United States, and the European Union) explained the drop recorded.“

Brazil and the European Union were the only destinations that showed increasing figures in the inter-annual comparison, while ”China (main destination in accumulated terms), registered a 44% decrease and sales to Argentina were reduced by almost 60%”, says the report.

In June, the main destination was Brazil, with US$ 157 million (19% of the total). According to the research, “32% of the total exported to Brazil was dairy products.”

China was the second destination of the month and accounted for 13% of total exports, with US$ 110 million (53% less than in June 2022). Beef exports to that country had a 50% year-on-year drop. “Exports of meat by-products also decreased by 37% year-on-year,” Uruguay XXI added.

Third was the United States, with US$70 million (18% less than in June 2022), followed by the European Union, with US$67 million (25% drop in the year-on-year comparison), and in fifth place was Argentina with US$51 million (61% less than in June 2022).

Soybean exports fell 89% last month due to the drought; on the other hand, cellulose, and beverage concentrate exports grew, according to Uruguay XXI.