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29

2022

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09

Argentine Beef Exports Grow But Demand From China Takes Downward Path

Source:

MacroPress

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

 

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.