Soaring Prices Drive Argentine Exports of Bovine Meat to Reach Their Highest Value for a First Quarter on Record

Argentine exports of bovine meat reached their highest value during Q1 2022, the highest for a first quarter on record, despite the lower export volume. While the ranking of their trade partners remains the same, there’s a notable YoY change in their respective shares in value.

According to the Chamber of Industry and Commerce of Meats and Derivatives of Argentina (CICCRA), Argentina’s exports value reached $293 million USD in March, reflecting a YoY increase of 35%. The total export value in Q1 2022 amounted to $779.6 million USD, up 26% YoY. This was, by far, the highest value in exports for this product for the first three-month period in a year.

The increase in export value is particularly notable since the actual volume of exports declined by 7% YoY, totaling 137 mt in Q1 2022. The reason which explains the increase in value is the sharp annual rise in the average price of the exported products, at $5.69 USD/kg, 36% higher than the average price in the same period of 2021.

China remains the largest trade partner for Argentina, with a share of 64% in the country’s export value during Q1 2022 (that increased from roughly 60% in Q1 2021). China is followed by Israel, with a 9% share of the total, and then by Chile, with 6% of the total. However, these two countries experienced a YoY loss in their total share. For Israel, volume declined while the average price rose only slightly, relatively lower vs the rest of Argentina’s trade partners. For Chile, the decline in volume more than offset an increase in the average price. In the meantime, the share of export value to Germany, at 7% ($55 million USD), remained practically unchanged vs the same period in 2021. The share of the US (4%, 32 million USD during Q1 2022) almost doubled from Q1 2021, while the share of the Netherlands (4%, 34 million USD) also rose in annual terms. It’s important to note that the volume of meat exported to the Netherlands and the US in particular also rose in YoY terms, contributing to their share gain (in addition to average price YoY increases of 20% and 7%, respectively).

Argentine beef export values are still expected to increase due to strong demand and tight supply (logistical disruptions, high input costs). Moreover, the general ongoing weakness of the Argentine peso (USD/ARS was 23% higher this May than a year ago, and over 72% compared to the average in the same month in 2020) should continue to support exports in general, with producers finding the external market much more attractive. Nonetheless, the Argentinean government, since May 2021, has implemented a series of export bans of certain meat cuts in order to favor the domestic market, which has, nevertheless, decreased meat consumption due to the country’s ongoing economic woes. More bans of this type could inhibit the growth of Argentinean meat exports in the future.

Argentina, as of 2020, was the fifth largest exporter of fresh, chilled, and frozen bovine meat in terms of value, with a total of $2.72 billion USD, representing 5.4% of the world’s total exports. In 2021, this amount increased by 0.6% to reach $2.73 billion USD.

More on beef prices, production and trade data can be found on www.tridge.com.