The North American country offers better prices than China, where weak domestic demand has kept prices frozen since the beginning of the year.
The prices of the commodities are not going through their best moment, an aspect that has considerably harmed the performance of exports of Uruguay. However, there are differences depending on the country of destination of the products, at least in terms of beef respects. In that sense, USA It is today a much more profitable territory than China.
Import prices of beef from the United States have had an upward trend unlike what happens in China, which explains its growing importance as a destination for major global suppliers, according to the Argentine Exporting Producers Association (APEA) and reported Blasina Associates.
Based on your Livestock Report, The association indicated that when comparing the evolution of the average prices of Chinese imports of frozen boneless beef, with the average value of imports of USA of the beef For 90 CCL manufacturing, the opposing trends of both markets clearly emerge.
In this way, the average value in the Asian giant has remained stable at $5,000 for almost a year — in parallel with a scenario of weakened demand due to lower domestic consumption in the country — while in USA The price rose from $5,100 at the beginning of the year to $6,400 in July.
This is the largest price difference between both markets in the last five years, and is particularly due to the shortage of beef —especially for manufacturing— registered in the North American country. “The American importers They have increased the prices of trimmings, which has contrasted with the decline in the values in force in the Chinese market, causing a change of scenario that has already had consequences on the exports of the major global suppliers,” explained APEA.
The United States, the favorite destination for Uruguayan meat
This price scenario also explains why the US market surpassed the Chinese market – once the main one. meat eater Uruguay abroad—in imports of the main export product of Uruguay.
In this regard, the volumes of exported meat grew by 22% in June, driven by the increase in demand for USA and Canada. In this way, the year-on-year jump of the United States as a market increased from 23% to 37%, according to data published by the National Meat Institute (INAC).
In contrast, Chinese numbers continue to decline through a drop from 59% to 35% between June 2023 and this year. Although USA bought almost the same volume as China (15,672 tons the first and 15,651 tons the second), the difference was due to the value of the ton where the Asian giant paid 3,245 dollars and the North American country, 4,262 dollars.
The US market accounted for $66.7 million compared to $50.9 million for the Chinese market.
Source: Ambito
