The price of Argentine beef fell by up to 35% in the international market, and producers are concerned.
This is due to lower purchases from China and the decline in prices of beef exported to Europe due to the continent’s energy crisis.
Argentine beef exporters warned about price drops in their foreign sales.
The value of cuts destined for China, the leading buyer of the Latin American country, plummeted by 35%, while the price of meat sent to the rest of the international market fell between 25% and 20%.
In addition to China, to which Argentina exports close to 75% of its meat production, exporters are facing difficulties in the European market.
The situation is not new since, in September, the president of the Consortium of Argentine Meat Exporters, Mario Ravettino, commented to La Nación that a ton of beef went from being worth US$6,500 to US$4,800.
At that time, the value of beef in the Chinese market had been reduced by 20%.
Months before, in May, the Consortium had also stated in a communiqué the “significant drop in prices of the different bovine meat products” that Argentina exports, which made it necessary to “reanalyze foreign sales operations and readjust the cost structure to adapt exports to this new situation”.
At that time, China had reduced not only its import volume but also its purchase values.
The situation has not improved, and the meat industry continues in a climate of uncertainty due to the sustained drop in prices.
Business people only expect a recovery in five or six months.
The reasons behind the slump in demand in the Asian market lie in the “devaluation of the Chinese currency” in a context of “economic stagnation” and pork surpluses, according to Carlos Riusech, vice-president of the exporters’ Consortium, who explained to the Argentine press.
It is most likely that China will import Argentine meat products only in February or March 2023 because it has the necessary stock for the Christmas holidays, warned the Consortium.
At the same time, in Europe, the fall in demand can be explained by the recession, the cost of energy, and interest rates due to the sanctions against Russia.
According to the Secretariat of Agriculture, up to mid-October 2022, the Hilton Quota acquired a ton of meat at 9,735 dollars per ton; a year ago, its value was around 13,117 dollars, representing a 25.78% drop in prices.