The price of Argentine beef fell by up to 35% on the international market and producers are worried.
This is explained by a lower purchase from China and the drop in prices of meat exported to Europe as a result of the energy crisis in the continent.
Argentine beef exporters warned of falling prices in their foreign sales.
The value of cuts destined for China, the Latin American country’s main buyer, fell by 35%, while the price of meat sent to the rest of the international market fell between 25% and 20%.
Apart from 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 US$6,500 to US$4,800.
At that time, the value of beef in the Chinese market had decreased by 20%.
Months earlier, in May, the Consortium had also stated in a communiqué the “significant drop in prices of various beef products” that Argentina exports, which made it necessary to “re-analyze foreign sales operations and adjust cost structure to adapt exports to this new situation”.
At that time, China had reduced not only the import volume, but also the purchase values.
The situation has not improved and the meat industry continues in a climate of uncertainty due to the continuous decline in prices.
Business people expect a recovery in just five or six months.
The reasons behind the decline 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 highly likely that China will only import Argentine meat products in February or March 2023 because it has the necessary stock for the Christmas holidays, the Consortium warned.
At the same time, in Europe, the decline 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, until mid-October 2022, Hilton Quota bought a ton of meat at $9,735 per ton; a year ago, its value was around $13,117, representing a price drop of 25.78%.
