The deflation of the Asian giant affects placements. However, the sector will grow during the year thanks to other destinations.
Exports of beef to China fell again in February, to the tune of deflation in the Asian giant, which can bring complications in Uruguay if it is sustained over time.
During last month, 15,671 tons were exported to China48% of the total, representing a figure less than half, a level that it had been exceeding since 2020, within the framework of a growing relationship that included the signing of the comprehensive strategic alliance between both nations.
Although meat was the main exported product, a 4% drop was recorded due to lower acquisitions since Chinawhich imported 30% less beef from the country.
On the other hand, placements in USA improved and, for January and February, purchases of frozen meat (6,777 tons) and chilled meat (647 tons) doubled. A new trade statute with the economic power was presented last year by a bipartisan group of US congressmen without progress at the moment, but if achieved, it would substantially increase the entry of Uruguayan meat into the country.
Israela recently expanded market, became the second main destination for bone-in frozen products in February with 100 tons.
What is expected for beef exports this year?
The government agency Uruguay XXIin its monthly foreign trade report, projected that beef exports will reach $2.16 billion this year, which represents a year-on-year increase of 5%.
“China will continue to have a negative impact on the prices placed, while it is expected that greater sales to the United States and Canada -markets with better prices- partially compensate for this fall,” stated the February report.
The increase in placements of this key product would be associated, according to Uruguay XXI, with greater slaughter – 201,764 animals with a year-on-year increase of 0.2% in February – and normal weather conditions.
Source: Ambito
