In the detail, it can be seen that in the course of January and September 2021, exports of bovine meat totaled 615 thousand tons of pesos worth US $ 2014 million. In relation to the same period last year, they fell 5%. ABC noted that average prices practically matched the peak of late 2019, when pressure from Chinese demand raised them to exceptional levels. This was as a consequence of a consistent recomposition, with increases in all items and in the case of the month in question, the high participation of chilled meats and tariff quotas and Israel, whose unit values are higher, caused that level to be reached.
Meanwhile, Accumulated exports in the last twelve months have fallen compared to previous months: 868 thousand tons that billed u $ s2715 million.
The main destinations
China maintained its leadership in the ranking of the main destinations for Argentine exports of beef: the equivalent of almost 450 thousand tons of beef was exported, that is, 75% of the total. In terms of value, it participated with 60% of the total. It was followed by the European Union (14%), followed by Israel and Chile. The weighting achieved by the United States is remarkable, concentrating 4% of the total invoiced for beef.
Russia and Hong Kong have a small incidence that rises to 3% when giblets are added to the total export value.
The data (not all are negative)
According to provisional and partial data provided by INDEC, analyzed by ABC, In September 2021, exports of bovine meat totaled 54 thousand tons of product weight, equivalent to 77 thousand tons of weight, 16% more than the previous month, although 10% lower than September 2020.
“In the first nine months of the current year, 615 thousand peso tons have been shipped that reported 2014 million dollars, a decrease of 5% in volume and practically similar value than in the same period of 2020. 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, “said Mario Ravettino, President of the Consortium of Argentine Meat Exporters (ABC).
The increase observed in the analyzed month was due to the upward evolution of both chilled and frozen meats. In the area of chilled meats, the tariff quotas towards the European Union had an impact, which verified record figures (Quota 481), or close to their all-time highs (Hilton). Likewise, shipments of frozen meats to China and particularly to Israel increased, reaching one of the highest levels in recent years.
The tariff quotas and Israel have made it possible to circumvent the limit established by the application of Decree 408/21, which assigned quotas to each exporting plant for a total equivalent to around 45 thousand peso tons. After stabilizing in June and July, at 51 thousand tons, they rose in the following months to reach the second highest in 2021 in September, although it is lower than the average of the second half of last year and surely lower than the It could have been achieved if the restrictions applied were not mediated, considering the expansive context of the global market and the supply limitations faced by other providers.
The total value invoiced in September was 310 million dollars, 25% more than twelve months ago.
China has continued to lead exports of bovine meat, although it yielded considerably in its participation: it averaged 80% before the restrictions applied, to reach 64% in September.
The monthly evolution clearly demonstrates the positive effect of the tariff quotas towards the EU and of the exceptions established in the restrictions on shipments.
After the peak registered last May, which with 52 thousand tons included a record volume of frozen meat with bone of 13.5 thousand tons, exports to China fell to 28 thousand and 25 thousand tons in June and July respectively, to stabilize at 33 – 36 thousand tons, with bone meats participating with 8.5 and 9.1 thousand tons, respectively.
The impact in terms of turnover of the The verified decline was tempered by an upward trend in the mean values: In August, the average value of pitted meat exports to China was 5076 dollars / ton and increased again in September 5368 dollars / ton, 48% more than twelve months ago and only 300 dollars less than the peak observed at the end of 2019.
However, it has not been possible to offset the impact of the restrictions on the invoiced value, in the last three months a loss of 178 million dollars has accumulated, compared to the monthly average of the first five months of 2021:
‘’In the first nine months of this year, a total of 325 thousand tons of frozen meats were 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 offset the fall in recent months, so the total invoiced is similar to the same period in 2020. Another positive factor was the improvement in values media that are gradually approaching the 2019 record, ” Ravettino added.
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