This is the fifth consecutive loss. Since May, the value of a ton of beef has decreased by 15.4%.
He export price of beef Uruguay fell in October to its lowest value in the year, after five consecutive casualtiesand the ton remained in $3,993. A situation that worries export sectors that are already overwhelmed by the loss of competitiveness of Uruguayan products in international markets.
In May, the price per ton averaged $4,721. In October, after five consecutive months of price declines, the export price of beef closed below the $4,000 threshold, falling a total of $728 (15.4%)according to official data from the National Meat Institute (INAC).
Likewise, and as reported by Blasina y Asociados, so far this year the Average Export Income (IMEx) It stands at $4,270. This value represents a 16% drop compared to the $5,074 recorded in the same period of 2022.
This situation runs parallel to a visible deterioration in placements of the country, especially the rural sector—between the impact of the drought and a lower demand for China, the main buyer of beef in the country—although in October exports registered a certain rebound—relative if one considers that last year placements also began to decline in the same period.
For its part, the sheep meat showed a slight improvement. Although the export price registered a 21% decrease, with a monthly value of $3,570 against $4,683 in October 2022; In September the lowest average of the year had been recorded.
So far this year, the IMEx for sheep meat reaches $3,869 per ton, 24% less than $5,117 a year ago.
Exports will fall by 20% in 2023
The exports of Uruguay in 2023 they will fall twenty% compared to the previous year according to the latest report of International Trade Outlook for Latin America and the Caribbean published by the ECLAC. The economic present of China is one of the main reasons for this negative variation, but the drought historical situation that the country suffered also influenced the lower levels of placements.
Beyond a recent positive record, the report of the Economic Commission for Latin America and the Caribbean (ECLAC) projected a closure with negative results for the country: exports will have a 20% drop from “end to end.” Although it is necessary to take into account the extraordinary figures that were achieved last year, the drought and lower demand from China explain a good part of this forecast regarding trade in goods.
Likewise, the country will have setbacks both in prices like in volume and worth of exports: in the first case, the drop will be 4%; in the second, 17%; and finally, 20% corresponds to the fall in the value of Uruguayan placements.
Source: Ambito
