Argentina: beef exports fall for third month in a row

In October 2022, beef exports from Argentina fell for the third month in a row, dropping 3% in volume month-on-month, with sales reducing by 10.4%.

According to Argentina’s Chamber of Meat Industry and Commerce (CICCRA), the exported volume dropped by 11.6% from the ceiling hit in July, whereas the price fell by 20% from the highest point in April.

In the tenth month of the year, the average price paid for each tonne of beef sold by exporters was USD 5,031 a tonne, 10.4% below September values. On the other hand, China paid an average of USD 4,252 per tonne, down 8.7% less than in the previous month and 17.7% less from May.

A similar scenario also developed in Europe, which paid an average price that fell 29% between April and October. In the case of sales to the US and Chile, there were price drops of 31.4% and 15.0%, respectively, from February.

The Argentine meatpacking industry exported a value of US$ 265.8 in the tenth month of the year, 13.2% less than in September.

See below the track record of the exports of Argentine beef (hs 0201, 0202) from Jan 2019 to Oct 2022. The data is from DataLiner.

Argentina beef exports | Jan 2019 – Oct 2022 | TEUs

Source: DataLiner (click here to request a demo)

In the Cañuelas region, the cattle price has been fixed for five months. According to sources close to that market, the main reasons are a decline in demand for Chinese beef started in August, as well as a significant drop in prices paid in the European and Chilean markets since the second quarter of the year.

To these variables must be added the deterioration in Argentine families’ purchasing power caused by an inflation rate that shows no signs of abating. As a result, both cattle destined for the domestic market and those destined for export experienced price growth in the last year, which was lower than inflation, quoted at 85.4%.

Source: Beef Point

To read the full original article, please access: https://www.beefpoint.com.br/exportacoes-de-carne-da-argentina-caem-pelo-terceiro-mes-consecutivo-em-outubro/

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