Export beef: why is it necessary to diversify markets?

Market & Price Trends

Published Mar 29, 2024

Tridge summary

In 2023, the Argentine beef industry has faced significant challenges and opportunities. A substantial 78.5% of its beef exports, amounting to 685,000 tons, were shipped to China, experiencing an 8% increase in volume but a 19.5% decrease in price per ton from the previous year. This highlights the urgent need for market diversification, with efforts underway to expand into new and existing markets. Meanwhile, a meat processing plant near Bahía Blanca is recovering from a drop in activity due to a Hamas attack, awaiting authorization from China to resume exports and preparing for a Senasa audit. Despite providing over 400 direct jobs and facing high foreign demand, the plant struggles with domestic price lags due to rising input costs. The industry, with a significant idle capacity, is poised for growth, underlining the potential for increased international presence and domestic stability.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

78.5% of Argentine beef exports in 2023 (685,000 tons) were destined for the Chinese market. The increase compared to 2022 was 8%, but the news is that China paid 19.5% less per ton compared to the previous year. The data ratify an idea, long understood by the export sector, regarding the necessary diversification of the market. In other words: without ceasing to supply the Asian giant (which is not presumed to be willing to pay more, at least for the moment), there are two keys that urgently need to be considered: —Expand the reach to consolidated markets, either in quality as in courts, on which there are no longer limits after the decision of the current Government to eliminate - as of this January 1 - the restriction that the previous administration maintained with respect to the so-called grillers or popular, in reference to the barbecue (with or boneless) and tapa, skirt, matambre, buttock, shoulder and vacuum. —Enter other countries that, for multiple reasons, including the ...

Source: Agromeat