1. Weekly News

European Union

EU-Mercosur Beef Trade Tensions Rise Amid Sustainability Rules and Farmer Backlash

The ongoing debate over the European Union (EU)-Mercosur trade agreement has highlighted growing tensions between European farmers and EU trade policy, particularly regarding beef imports. While trade with Mercosur countries—Argentina, Brazil, Paraguay, and Uruguay—has increased significantly, the majority of imports are raw materials, including USD 18.85 billion (EUR 16 billion) in agricultural goods such as animal feed and beef-related products. However, European farmers feel sidelined in the discussion, warning that the agreement could severely impact sectors like beef, poultry, and sugar by allowing imports produced under lower environmental and sanitary standards. Adding to their concerns, the European Union Deforestation Regulation (EUDR), set to take full effect by Jan-26, will ban imports linked to deforestation, including beef. This regulation introduces strict traceability and geolocation requirements for products, which some South American exporters argue are costly and impractical. While the regulation aligns with the EU's climate goals, its implementation poses logistical challenges that could disrupt beef trade with Mercosur countries, further intensifying the debate over fair competition, sustainability, and food security within the bloc.

Paraguay

Paraguay Targets High-Value Markets with Beef Audit Readiness and FMD Policy Shift

Paraguay is intensifying efforts to strengthen and expand its beef export markets through upcoming audits by the United States (US) and Japan. The National Animal Quality and Health Service (Senacsa) is coordinating preparations for inspections by the US Food Safety and Inspection Service (FSIS) in Jul-25 and Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) in Aug-25. These technical visits are crucial for maintaining access to the US market, approved in Dec-23, and for advancing negotiations to open the Japanese market.

At the same time, Paraguay is preparing to phase out foot-and-mouth disease (FMD) vaccination by May-28, aiming to boost global competitiveness. Authorities argue that the elimination of FMD vaccination will enhance market access, reduce trade barriers, and allow for more efficient use of meat products, potentially increasing beef industry revenue by up to USD 200 million annually. The move is also expected to benefit pork and lamb exports, which currently face limitations. By ending vaccination for a disease deemed eradicated, Paraguay hopes to streamline trade processes and achieve a higher international health status.

South Korea

South Korea Urged to Prioritize Food Security Amid US Pressure on Agricultural Trade

Amid growing US demands for South Korea to ease quarantine regulations on beef over 30 months old and allow more genetically modified organisms (GMOs), experts suggest these issues may be used as strategic trade negotiation tools by the US administration. According to the Korea Rural Economic Institute (KREI), the US is leveraging South Korea’s agricultural sensitivity to push for expanded beef exports and address pressures from ongoing US-China trade tensions, particularly in soybeans. While current trade talks center on tariffs for steel and automobiles, South Korea is urged to safeguard food security as a national strategic priority. The Rural Development Administration highlights the need for inter-ministerial coordination, product-specific response strategies, and long-term competitiveness through smart agriculture and export diversification. With the possibility of strengthening US protectionist measures ahead, South Korea must preemptively refine its negotiation strategies to protect its agricultural sector and ensure sustainability.

South Korean Hanwoo Beef Expands Global Reach with Export and Promotion Drive

Seosan Taean Livestock Cooperative recently celebrated its first export of Seosan Hanwoo Bulgogi to Mongolia. This marked a step toward globalizing South Korean beef and easing market pressures on local farmers by utilizing less-preferred cuts. The cooperative aims to expand the reach of high-quality Hanwoo while reinforcing brand value and consumer trust. Alongside this, Hanwoo’s international promotion continues through initiatives like the 2025 K-Tourism Roadshow in Malaysia, where a promotional booth in the K-Food Zone attracted around 3,000 visitors. Activities such as tastings, giveaways, and informational brochures, featuring details on halal-certified Hanwoo and its quality systems, helped raise awareness and interest in South Korean beef. Survey results showed high satisfaction among participants and revealed a strong potential to increase brand recognition, especially among first-time consumers. These efforts are part of a broader strategy to promote Hanwoo globally as a premium K-food product and strengthen its appeal among international consumers and tourists.

Uruguay

Uruguayan Beef Market Sees Boost Despite US Tariff Pressures

The global beef market remains strong, with Uruguay continuing to play a key role as a major supplier to China, the US, and Europe. Last week saw a notable rise in demand, especially from China, where importer activity surged, leading to slightly higher prices. In the US, Uruguay’s top beef market, earlier hesitation caused by tariff uncertainty is easing as stocks run low and domestic prices stay high, particularly for lean processing meat. In Europe, prices have stabilized, supported by limited Argentine supply and steady demand. Although US trade volumes fell 36% month-on-month (MoM) in Jun-25, contributing to a 15% drop in Uruguay’s overall exports in the first three weeks, this was offset by a 19% rise in Chinese demand and strong growth in Europe, including a 97% jump in United Kingdom (UK) imports. As of June 21, Uruguay had exported 252.54 thousand metric tons (mt) of beef in 2025, up 5% year-on-year (YoY). Weekly average prices reached USD 5,286/mt, well above the year’s average, pointing to a more optimistic second half of the year.

2. Weekly Pricing

Weekly Beef Pricing Important Exporters (USD/kg)

Yearly Change in Beef Pricing Important Exporters (W26 2024 to W26 2025)

Brazil

In W26, Brazil’s wholesale price for boneless rear beef held steady at USD 4.73 per kilogram (kg), reflecting a stable balance between supply and demand. However, the price reflected a 3.28% MoM rise and a 5.82% YoY increase. Scot Consultoria, a Brazilian agri-market intelligence firm, indicates that cattle prices in São Paulo have remained flat amid increased supply and a slowdown in domestic meat purchases, with some buyers postponing orders until after weekend sales. Meanwhile, Safras and Mercado noted declining wholesale prices for both front and rear beef cuts, a trend expected to continue into the latter half of Jul-25 when consumer interest typically wanes and demand shifts toward more affordable proteins like chicken, eggs, and sausages. In São Paulo and Mato Grosso do Sul, physical cattle prices fell last week as meatpackers ramped up slaughter volumes, spurred by a cold front that boosted animal availability in key livestock regions.

Australia

Australia’s National Young Cattle Indicator (NYCI) averaged USD 2.45/kg in W26, down 0.81% week-on-week (WoW) and 2.78% MoM, though still 19.51% higher YoY. The weekly decline in USD terms was largely driven by exchange rate fluctuations, as prices in AUD remained steady at AUD 3.79/kg. According to Meat and Livestock Australia (MLA), stable cattle prices have sustained market confidence despite a quieter week, with yardings falling by 17.76 thousand heads to 55.99 thousand heads. Demand for restocker steers remained solid, and interest in heavy heifers was even stronger. While restocker steer and heifer prices moved in opposite directions, strong demand at Dalby supported heifer prices. Renewed buying interest in cows led to a rise in the processor cow indicator, with high prices recorded across all states, including a strong showing at Dubbo despite 1.3 thousand cows presented at Dalby.

United States

In W26, US lean beef (92% to 94%) averaged a record high of USD 9.07/kg, rising 0.78% WoW, 3.54% MoM, and 8.88% YoY. The price surge is driven by strong seasonal demand from summer grilling and outdoor events. This is exacerbated by tightening supply as the US cattle herd fell to 86.7 million, its lowest since 1951, and beef cows hit a 74-year low at 28 million heads. The recent suspension of live cattle imports from Mexico due to a screwworm outbreak adds to supply pressures. Additionally, the 10% US import tariff hike imposed in Apr-25 may have further impacted beef import flows and pricing. As a result, beef prices are expected to stay high throughout the summer.

Argentina

In W26, Argentina’s average steer beef price declined by 4.82% WoW to USD 2.37/kg, likely reflecting weakened demand following two national holidays that had temporarily boosted purchases in the previous week. Although prices were down 0.42% MoM, they remained 8.22% higher YoY, suggesting a possible gradual recovery in demand after the economic downturn of 2024. However, volatility continues to challenge the beef sector. In May-25, cattle slaughter fell by 5% YoY to 1.12 million heads, signaling deeper structural problems within the supply chain. While average slaughter weights hit a record 232.3 kg, feedlot profitability dropped sharply, down 63% in a single month, due to rising input costs, raising concerns about long-term sustainability. For the first time in decades, Argentina turned to beef imports, mostly from Brazil, underscoring the gravity of the crisis. Despite this, there is no immediate protein shortage, as per capita consumption of animal protein remains high at between 115 kg and 120 kg, though consumers are increasingly favoring more affordable options like chicken and pork.

3. Actionable Recommendations

Strengthen EU Beef Safeguards and Transparency in Mercosur Trade

To address European farmer concerns and ensure fair competition, the EU should establish robust, enforceable safeguard mechanisms in the Mercosur trade agreement. These should include clear environmental and sanitary standards, reciprocal compliance guarantees, and real-time monitoring of beef imports. At the same time, the EU should enhance consumer transparency by mandating origin labeling and public access to deforestation-free certifications. Engaging farmer organizations directly in policy discussions and supporting them through transition funds will help balance trade ambitions with domestic agricultural resilience.

Accelerate Paraguay’s Audit Readiness and Market Differentiation Strategy

Paraguay should intensify technical and logistical preparations for upcoming US and Japan audits by conducting internal audits, reinforcing cold chain systems, and updating traceability documentation. Concurrently, the country should position itself as a premium beef exporter by highlighting its transition to FMD-free status without vaccination. Communication campaigns targeting Japanese and US buyers should emphasize animal health, product safety, and Paraguay’s lower-cost, high-quality beef as a competitive advantage. This dual approach can help Paraguay unlock high-value markets and expand export diversity.

Expand Global Market Penetration for Hanwoo Beef through Cultural Branding

To maximize the momentum from Hanwoo’s initial exports and international promotion, South Korea should implement a targeted market expansion strategy centered on cultural branding and consumer education. This includes leveraging K-food popularity and tourism channels, increasing the number of halal-certified Hanwoo outlets abroad, and establishing partnerships with high-end restaurants and distributors in priority markets such as Southeast Asia and the Middle East. Additionally, regular consumer engagement through digital media and in-market events can sustain demand and build long-term loyalty.

Leverage Market Momentum to Diversify Uruguay’s Export Portfolio

Uruguay should build on its strong performance in China and Europe by diversifying product formats such as vacuum-packed premium cuts, organic, or grass-fed and expanding into underexploited markets like Southeast Asia and the Middle East. To mitigate US tariff uncertainty, Uruguay should strengthen direct buyer relationships and explore bilateral trade facilitation agreements. Domestically, enhancing cold storage capacity and digital traceability systems can reduce logistic bottlenecks and support real-time price and supply adaptability, ensuring Uruguay remains agile in a volatile global beef market.

Sources: Tridge, Aflnews, Agri, Agrinet, Agromeat, Bichos de campo, Foodmate