Argentina: The cow has the rope around its neck

Published 2023년 3월 13일

Tridge summary

China's beef imports, particularly from Argentina, Uruguay, and Brazil, are falling short of expectations due to a combination of factors including drought, lower quality cattle, and government export restrictions. The USDA's prediction of growth in China's beef imports in 2023 is not being met, with Mercosur countries exporting less to China than anticipated. This has led to an oversupply of low quality lean cow meat, causing a significant price drop of 40% in the past month. The government's maintenance of restrictions on exports of cuts from better conditioned cows shows no sign of change.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The drought does not let up, China does not push enough and the government does not take its claws from beef exports. Lower quality females go back to zero in terms of prices. The numbers indicate that for now the Asian giant will not be meeting the expectations that the review of its case by the USDA aroused. It must be remembered that the Department of Agriculture of the United States changed its negative forecast for the evolution of beef imports from China in 2023, for another that visualized a growth in foreign purchases up to a total of auspicious 3.4 million tons . It was a very celebrated novelty at the time, because the Oriente locomotive is not just any importer, it is an exclusive client for Argentina, Uruguay and to a lesser extent Brazil. The three account for 75% of China's imports. According to Uruguayan analysts, taking into account the proportion of meat with and without bone imported last year, some 165,000 tons will have to sail from this region every month to ...

Source: Chacra Magazine