“The improvement in prices in key destinations such as China and the European Union and the strong incidence of tariff quotas – which include the most precious cuts – have contributed to these results,” explained Mario Ravettino, president of ABC.
In September, in chilled meats, the tariff quotas towards the European Union had an impact, which verified record figures (Quota 481), or close to their historical maximums (Hilton).
Likewise, shipments of frozen meats to China and, particularly, to Israel increased, reaching one of the highest levels in recent years.
After stabilizing at 51 thousand tons in June and July, they rose in the following months to reach the second highest in 2021 in September, although it is lower than the average for the second half of last year.
The total value invoiced in September was US $ 310 million, 25% more than twelve months ago.
China continued to lead exports of beef, although it considerably lost its share: it fell from 80% in May, before the restrictions, to 64% in September.
After the peak registered in May -which with 52 thousand tons included a record volume of frozen meat with bone of 13,500 tons-, exports to China fell to 28 thousand and 25 thousand tons in June and July, respectively, to stabilize at 33- 36 thousand tons (bone-in meats, 8,500 and 9,100 tons, respectively).
In terms of turnover, the impact of the fall was mitigated by an upward trend in average values: in August, the average value of pitted meat exports to China was US $ 5,076 per ton and increased again in September to US $ 5,368, 48% more than twelve months ago and only $ 300 less than the peak at the end of 2019.
This rise in prices failed to offset the impact of the restrictions on the invoiced value: in the last three months a loss of US $ 178 million has accumulated, compared to the monthly average of the first five months of the year.
Ravettino highlighted that “in the first nine months of this year a total of 325 thousand tons of frozen meat product was destined for China, equivalent to almost 450 thousand tons of beef, three-quarters of the total Argentine exports of bovine meat.”
“The firmness of shipments to this destination until the enactment of Decree 408/2021 has compensated for the fall in recent months, so the total invoiced is similar to that of the same period in 2020; another positive factor was the improvement in the values media that are gradually approaching the 2019 record. ”
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