China reached a new record of beef imports in May, reaching some 230,000 tons and reaching its highest level for a January/May period in the last 6 years, which opens the debate about whether or not this situation can affect the exports from Uruguay.
The Uruguayan placements towards the Asian giant have been declining for several months and even their incidence was surpassed by Brazil, displacing it at times as the country’s largest strategic partner, something that was reversed again last month.
Therefore, according to a report by Blasina y Asociados that took into account data from the China General Administration of Customs (GACC), the 30.7% year-on-year increase in beef purchases in May appears as a promising scenario, at a time when that country has been above 200,000 tons for 12 months.
What is the panorama like in Uruguay?
However, the momentum in chinese demand so far it has not meant an increase in the Uruguayan exports of beef, to the point that they dropped steadily and in recent weeks the level of sales to the countries of North America, with USA to the head.
Although the Asian country was the destination with the highest sales in May, for a total of 326 million dollars, there was a 10% decrease compared to the same month in 2023 and the boost had to do with the placements of soy.
Specifically, beef had the greatest negative impact on the trade balance, with a decrease of 49% compared to May of last year and being surpassed by cellulose.
The stagnation of the Chinese economy, a key factor
Although the government managed to add different products to sales towards China, such as equine meat and bovine stomachs, The stagnation of the economy in the Asian giant is the main factor slowing down trade.
For this reason, the 0.3% year-on-year increase in inflation in May in the country he presides Xi Jinping, which has been rising for 4 months, could imply signs of recovery, after a period of deflation.
However, analysts agree that the boost to demand must be even greater to accelerate improvements after the economic effects generated by the pandemic. Thus, the accumulated stock and lower demand, due to the fact that budgetary efforts were aimed at boosting the Internal market, contributed to a cooling in purchases Uruguay.
In this context, the increase in purchases of beef, that has to Brazil As the main supplier, it could be good news as long as operations between the country and the Asian giant become more dynamic.
Source: Ambito
