A Significant contraction in China’s demand for Uruguayan beefas the main factor, determined a notorious drop in exports and income in the area that in recent years has led the country’s foreign placements.
Fernando Reich, head of the Information Management of the National Meat Institute (INAC), informed The Observer that during January Uruguay placed 33 thousand tons for about US$135 million, with an average price of US$4,000 per toncarcass weight.
Global revenue fell by US$80 million compared to the January 2021 record, the volume placed was 18% less (7,300 tons less) and the average price fell by US$800 per tonalways comparing with the first month of last year.
“We see the big contraction in Chinathere is 30% less volume placed, with US$ 55 million less received, of the US$ 79 million less that came in, China explains most of it,” he reported.
In the case of Nafta, after a good placement in 2022 for Uruguayan meats (see below), this trend continues so far in Januarywith a slightly lower price, but with an increasing volume, with higher income.
There is also interesting growth in the European Union40% more in volume was placed, but with a slightly lower price, with a final result of US$ 2 million more compared to January 2021.
A different piece of information, Reich mentioned, derives from the analysis of the placements in the United Kingdom, a very marginal market because there are very few tons, it shows a 77% growth and a price almost on par with that achieved in sales. to the European Union.
What left 2022
What happened was a record revenue yeardespite a lower volume placed in relation to what was exported in 2021, with an average value per ton that reached a record in the first half and was under great pressure at the end of the year, Reich analyzed.
540 thousand tons (carcass weight) were placed, 5% less20 thousand tons less than in 2021, but with a high average export price ended in record revenue of $2.6 billiononly for bovine meat, which explains 81% of the income obtained from all exported meat.
China captured 64% of what was placed, Nafta 17% and the European Union 7%. Nafta was the only market that grew, supported by Canada and the United States, there we see an upward trend that is maintained in January, it is a positioned market with more volume and a stable price, which results in higher income.
ANDThe average export price in the annual average was registered at US$ 4,900 per tonwith a record in May of US$5,600 per ton and a second half with a correction, ending in December at US$3,000 per ton.
DANIEL GARCIA / AFP
Termination of cattle in corrals.
Work from less to more
In January the cattle slaughter barely exceeded 150 thousand heads. That is 27% less than in January 2022, almost 58,000 fewer animals slaughtered, Reich said.
However, he pointed out there is a growing trendconsidering that in the first week of January 20,000 animals were slaughtered and in the last week the barrier of 51,000 was exceeded.
“That gives a sign of recovery, but still this January is one of the Januarys with less work considering the series of the last 20 years,” he said.
He added that the main interannual decrease was seen in the category of eight-toothed cows, with 43% less, about 33,000 fewer animals. There is also a drop in young steers, from two to four teeth, about 4,000 fewer animals.
