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2022

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11

The Beef Import Situation in China: Brazil Breaks 50% Market Share; Australia The Only One Enjoys MoM Rise in Beef Prices

Source:

BTC

According to GACC, Chinese mainland beef import volume resumed growth in Oct 2022, after a slight decline in September, up 2% to 254,000 tons, with a year-on-year growth of 22%, touching the historical high.

 

According to GACC, Chinese mainland beef import volume resumed growth in Oct 2022, after a slight decline in September, up 2% to 254,000 tons, with a year-on-year growth of 22%, touching the historical high. However, the average import prices have fallen every month since Aug and continued to fall by 252 US$/T to 6,535 US$/T. Buffeted by the weak consumer demand, futures prices have gradually retreated over the past two months. Monthly average import prices starting in Nov are expected to accelerate the MoM declining trend.

 

Brazil's monthly beef exports to China exceeded 130,000 tons both in Aug and Sept, cumulatively reaching 265,000 tons. The import volume shows an increase and a record high in Oct, reaching 130,000 tons up 16% MoM and 75% YoY, as a large number of Brazilian beef products ordered before gradually arrived at ports. The import value also displays a significant surge to 870 US$ million, while the average import price declined by 294 US$/T to 6,681 US$/T. Besides, its market share surged to 51% after maintaining between 40%-46% for 6 consecutive months, touching a historical high.

 

Beef imports from Argentina dropped by 14% to 39,000 tons in Oct, basically the same compared with last Oct. Its market share downsized to 15.5% as the import value declined to 210 US$ million with the average price falling MoM to 5,429 US$/T, down 148 US$/T.

 

In the past two months, imports from Uruguay beef market dropped prominently, plunging 40% in Sept and remaining at a low level of 21,000 tons in Oct. Also, its market shares have accounted for around 8% at a historically low level in these two months. The import average price dropped 368 US$ MoM to 4,918 US$ for the first time this year.

 

In addition, the Chinese mainland imported less than 20,000 tons (19,732 tons) of beef products from New Zealand in Oct, down 7% from the previous month but up 42% YoY. The average price of beef imports from NZ fell by 479 US$/T to 6,141 US$/T.

 

Nearly 16,000 tons of beef were imported from Australia in Oct, basically flat compared with Sept yet with an increase of 8% YoY. The average import price of beef products rose by 152 US$/T to 8,623 US$/T, with Australia as the only source country that saw an MoM increase in beef export prices to mainland China.

 

The beef imported from the US accounts for 14,000 tons, down 13% YoY and 23% MoM, with the average import price falling to 9,229 US$/T from 9,787 US$/T in Sept.

 

Imports from other source countries accumulated nearly 14,000 tons, among which Russia has the largest MoM growth of 70% to 1,250 tons in Oct, while beef imports from Serbia fell by a high 67% to 140 tons from 425 tons last month.