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09

2022

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10

The Demand of China's Beef Market Is Weak, and Overseas Suppliers Worry That It Will Continue to Affect Beef Exports

Source:

BTC

Affected by the devaluation of the RMB and the domestic epidemic situation in China, the consumption of beef products in the Chinese market is relatively weak, which to some extent affects the beef exports of Brazil, Argentina and Uruguay, the three main source countries.

Affected by the devaluation of the RMB and the domestic epidemic situation in China, the consumption of beef products in the Chinese market is relatively weak, which to some extent affects the beef exports of Brazil, Argentina and Uruguay, the three main source countries.

 

The Association of Argentine Export Producers (APEA) also said that the devaluation of the RMB has reduced the purchasing power. In addition, the Chinese government has taken strict measures to prevent and respond to the outbreak of the epidemic, which has affected China's domestic population mobility and consumption to a certain extent, further hindering the circulation and consumption of meat and other products, leading to a decline in the purchase demand of customers in the Chinese market, and subsequently driving down the transaction price.

 

-Argentina

Recently, the Argentine industry once again said that Argentina's beef exports and its export volume to China in Sept were not optimistic. Mario Ravettino, chairman of the Argentine Meat Exporters' Chamber of Commerce (ABC), said that the overall turnover in Sept was small, and the price continued to decline compared with last month, with a more significant difference compared with the price in the first half of this year. In Aug, Argentina's beef exports to China decreased by 10% MoM to 41,000 tons, and its exports to China also fell by 16% MoM. The average price of beef exports to China also fell to US $4,741 per ton, down by US $359 per ton MoM. Ravettino believed that the export ban imposed by the Argentine government was not the main factor that caused the decline in exports to China in Aug, but the decline in the demand of the Chinese market itself. This has further raised concerns in the Argentine industry. If the current downward trend continues, it will not only affect Argentina's beef exports, but also adversely affect the overall income of the Argentine beef industry this year.

 

-Brazil

In addition to Argentina, the Brazilian industry also expressed concern about the current weak demand for beef in China. According to the feedback of Brazilian exporters, the Chinese market is relatively stagnant at present, and few deals have been concluded recently. It is expected that this situation will continue in the coming weeks. The Brazilian industry experts believe that China's beef import volume has continued to run at a high level in recent months. In addition, the volume of Brazil's exports to China has reached new highs. The volume of products that have arrived and are about to arrive in the Chinese market has led to excessive supply in China's domestic market, but the demand has not been significantly boosted. The weak demand environment has made it more difficult to reach a large number of new orders.

 

-Uruguay

At the same time, the Uruguayan side also said that because the Uruguayan beef market is highly dependent on China, the recent export situation also continues to be very uncertain. In addition, the current weak consumption dilemma in the Chinese market has also had an impact on the prices of live cattle in the three South American countries. Recently, the prices of live cattle in Brazil, Argentina and Uruguay have declined to some extent.