The exports of goods from the Uruguay had a strong year-on-year decline in the month of May, with a drop in the 31% compared to the same month last year as reported by Uruguay XXI, reaching a decrease of 14%
This performance is explained, on the one hand, by lower beef exports, which have fallen in both volume and price. It must be made clear that the performance of this sector last year was exceptional, due to the very high volumes and record prices achieved.
On the other hand, the export figures are reflecting the collapse of soybean production due to the drought this year, which is being seen conclusively in the figures for May and will continue to be seen in the coming months.
In this context, Uruguay XXI released today a projection of export performance for the entire year, precisely incorporating the aforementioned factors and projections for the rest of the main items. The agency estimates that exports of Uruguay will reach US$ 11,920 million, which would imply a decrease in eleven% compared to last year.
The drop in meat and grain exports will be partially offset by higher pulp exports, to the extent that production has already started in the UPM 2 plant, in Paso de los Toros.
China, the main destination of exports
In the month of May, China resumed first place in the ranking in terms of destinations for exports from the Uruguay, representing the 30% of the total exported, despite the fact that sales to that country fell by more than 30% compared to May 2022. The second place in the ranking of destinations was occupied by Brazil with 22% of the total followed by the European Union with 11%.
Uruguay It has tried in recent years to open new markets and establish new trade agreements to improve its export performance, but this has had little progress. The Minister of Livestock, Agriculture and Fisheries, Fernando Mattos, He was in China on an extensive tour and displayed intense work on various planes. Although the concrete advances have been modest, new developments are expected in the framework of the visit that President Luis Lacalle Pou has planned the Asian giant in the second semester, although there is still no specific date.
Beyond the commercial and productive dynamics, Uruguay it is also facing price-competitiveness problems, to the extent that the internal cost in dollars is rising significantly. In such a way that the Real Exchange Rate has had a fall 10% in the last year and is at a record low, according to figures from the Central bank.
Source: Ambito
