W47: Weekly Beef Update
Live Beef
As a strategy for the development and union of the countries of the Latin American region, the Inter-American Development Bank (IDB) and the Inter-American Institute for Cooperation on Agriculture (IICA) launched an initiative for the creation of a "Sustainable Livestock Platform In the Americas". Initially, the platform will host the countries of the southern cone: Argentina, Brazil, Uruguay, Paraguay and Chile, since the region represents 38.5% of world beef exports , 27.5% of the world bovine herd and 25.2% of world beef production, according to EuroCarne. The platform, announced during COP 27 by IICA's Assistant Director General, Lloyd Day, and the IDB's Head of the Climate Change and Sustainable Development Division, Graham Watkins, will have as main objectives: building a shared vision of sustainable livestock in the continent and promote policies and lines of action that accompany the transition of current livestock production systems towards systems with higher levels of economic, social and environmental sustainability.
US: Live Cattle Futures Hit the Highest on the Chicago Mercantile Exchange
Live cattle futures on the Chicago Mercantile Exchange (CME) hit the highest in nearly three weeks on Friday, supported by firm cash cattle markets and what appeared to be speculative buying, Reuters reported, citing analysts. Most-active CME February live cattle futures settled up 0.450 cent at 155.850 cents per pound after reaching 156.125 cents, the contract's highest since November 1. The spot December contract rose 0.325 cent to finish at 153.075 cents per pound. CME January feeder cattle ended up 0.800 cent at 180.775 cents per pound. Live cattle drew support this week as cash cattle traded in Kansas at $151 to $152 per hundredweight (cwt), up $1 to $2 from last week, and in Texas at $150 to $151 per cwt, steady to $1 higher from last week. After the CME closed, the US Department of Agriculture's monthly Cattle on Feed report put the number of cattle placed into feedlots during October at 2.108 million head, down 6% from a year ago, while analysts surveyed by Reuters on average expected a decline of only 3.5%. The USDA reported the number of cattle on feed as of November 1 at 11.706 million head, down 2% from last year, while analysts on average expected a decline of 1.7%. With markets closed on November 24 for Thanksgiving, meat packers have a short week next week to buy enough cattle for a full week of slaughter the following week.
US: Cattle Futures Mixed on Tuesday
At the Chicago Mercantile Exchange, live and feeder cattle were mixed waiting for direct cash business to develop. December live cattle closed $0.25 higher at $153.80 and February lives closed $.30 lower at $156.42. January feeder cattle closed $.95 lower at $181.67 and March feeder cattle closed $.52 cents lower at $184.57. It was another quiet day for direct cash cattle business. Prices will likely push higher again as supplies are expected to tighten. A few bids surfaced in the North at $242 to $245 dressed, however, the rest of cattle country was quiet. Asking prices in the South were at $154 to $155 live, with nothing coming out of the North. Significant trade volume will likely take place on Wednesday. At the Tri-State Livestock Auction in Nebraska, steers and heifers were $3 to $5 higher on comparable offerings. The USDA says demand was good throughout the day. Receipts were down slightly on the week and the year. Feeder supply included 50% steers and 23% of the offering was over 600 pounds. Medium and Large 1 feeder steers 439 to 444 pounds brought $240 to $255 and feeder steers 527 to 539 pounds brought $205 to $223. Medium and Large 1 feeder heifers 466 to 498 pounds brought $183.50 to $197 and feeder heifers 898 pounds brought $172. Boxed beef closed higher on solid demand for solid offerings. Choice closed $1.06 higher at $256.63 and Select closed $.95 higher at $234.18. The Choice/Select spread is $22.45. Estimated cattle slaughter was 129,000 head – even on the week and up 5,000 on the year.
Brazil: São Paulo Reaches Requirements to Suspend Vaccination Against Foot-And-Mouth Disease
The State of São Paulo may be exempted from the mandatory vaccination against foot-and-mouth disease, according to a note published by the Ministry of Agriculture, Livestock and Supply (MAPA) this Wednesday (23). The State obtained advances in the PNEFA (National Program of Surveillance for Foot-and-Mouth Disease) which are necessary for the withdrawal of vaccination. The Federation of Agriculture and Livestock of the State of São Paulo (FAESP) made joint efforts and supported the actions of the State Secretariat for Agriculture and Supply (SAA-SP) with MAPA. “The Federation worked intensely, held work meetings, proposed and managed so that the State's improvements were finally recognized. It is a great achievement for livestock farming in São Paulo”, says the president of FAESP, Fábio de Salles Meirelles.
Brazil: The Cattle Exchange Ratio Is the Worst of 2022
Average prices for live cattle have been operating below R$300 since the last week of October, pressured mainly by the greater supply of animals for slaughter. The partial average of November (until the 22nd) is at R$ 282.04, 5% below that of the previous month, 10.7% lower than that of November/21 and the lowest since November/19, when, It is worth remembering that cattle prices started a strong upward movement. Calf prices, on the other hand, have been showing some stability, supported by good rainfall volumes, which favour pastures and tend to heat up the demand for terminators for new batches of animals, for practically seven weeks. The ESALQ/BM&FBovespa Calf Indicator has closed in the houses R$2,300/head and R$2,400. In view of this, Cepea calculations show that the current exchange ratio is the worst for cattle ranchers in 2022. In the November partial, the finishing producer needs 8.68 arrobas of fat cattle from São Paulo to buy a calf in Mato Grosso do Sul, 5% more than in the previous month. Until then, the most unfavourable moment for the cattle raiser this year had been registered in January, when 8.59 arrobas of fat cattle were needed to make the replacement. The average exchange ratio this year is 8.35 arrobas, evidencing the current unfavourable moment.
Australia: Cattle Market Prices Begin to Ease in W46
The Australian Eastern Young Cattle Indicator (EYCI) saw a decline in market prices across all categories of cattle in W46, reaching its lowest price since mid-August 2022 of USD 0.66/kg (AUD 0.988/kg) carcass weight (including restockers, feeders, and processor). The Eastern Young Cattle Indicator (EYCI) dropped USD 0.24/kg (AUD 0.36/kg) for CWT (carcase weight) over October 2022, and National Feeder Steer prices dropped USD 0.25 (AUD 0.38) in October 2022 to USD 0.33 (AUD 0.497/kg) live weight. This price reduction is primarily the result of both buyer confidence that a sufficient supply of cattle will be available in the coming weeks and weaker demand from buyers as a cause of difficulties securing local livestock carriers and transporting cattle to the abattoirs as a result of the widespread flooding.
Spain: The Loss of the Status of Country Free of Epizootic Haemorrhagic Disease
As Animal's Health reported , on November 18 the Algete Central Veterinary Laboratory (LCV) confirmed the detection of epizootic haemorrhagic disease ( EHE ) in 2 bovine farms in the provinces of Cádiz and Seville. This Monday, November 21, the General Subdirectorate for Animal Health and Hygiene and Traceability of the Ministry of Agriculture, Fisheries and Food ( MAPA ), has informed the Services of the European Commission and the World Organization for Animal Health ( OMSA ) of the declaration of both outbreaks, which are the first to be declared of this disease by Spain. In the corresponding chapter of the disease of the OMSA Terrestrial Animal Health Code, it is stated that regardless of the health status of the ruminant population of the exporting country with respect to epizootic haemorrhagic disease, there are a series of merchandise that are considered safe , such as milk and dairy; meats and meat products; hides, skins, antlers and hooves; as well as wool and fibres. Regarding the export of animals and products of animal origin to third countries, the Ministry points out that Spain has lost the Status of a country free of Epizootic Hemorrhagic Disease before the OMSA.
Spain: Confrontation of Polish and Spanish Beef Cattle Breeding
The conditions under which the cattle are kept on a farm, located in the north-east of Spain, have been quite harsh. There was a definite water deficit. The pastures where the cattle were grazing were completely dry. Hence the breeders' decision to introduce the Angus breed, which copes better with difficult conditions and uses feeds with a lower nutritional value to a greater extent. Breeders in this area struggle with a deficit of roughage, which is why they use by-products from the vegetable industry, which reduces the cost of the prepared ration. The main advantage of this region is the reduced need for livestock facilities, as the animals are mostly out in the open, content only with canopies for shade.
Spain: 84% Of Native Spanish Livestock Breeds Are in Danger of Disappearing
The researcher Carolina Tamargo explained that at the end of 2021 the genealogical books in Spain registered more than five million animals located in more than one hundred thousand farms, of which four million belonged to native breeds in 80,000 farms involved in their breeding. By type of cattle, among the native Spanish breeds, 82.5% of the coils are in danger of disappearing; 78.7% of sheep; 77.3% of the goats; 76.9% of the porcine, 95% of the equine and 93.3% of the avian. The study determines that the "decline" of native breeds is compounded by the decrease in livestock farms in Spain, which in the case of Asturias reaches 53% loss of bovine farms in the last twenty years.
Spain: Andalusia Allocates Two Million in Aid to Build Water Tanks and Troughs for Livestock
The measure is part of the Rural Development Program (PDR) of Andalusia and supports investments for preventive measures that mitigate the possible impact of natural disasters, climatic adversities and catastrophes in the agricultural sector, such as drought and is included in the second Drought Decree. The total amount of these aids amounts to 2 million. The livestock sector is especially sensitive to drought situations, since the lack of availability of pastures in sufficient quantity and quality is compounded by the difficulty of guaranteeing the water supply to the animals, due to the fact that many of the water points of where cattle feed normally can become dry when the drought is prolonged. The beneficiaries of these aids will be those registered in the Register of Livestock Farms of Andalusia of poultry, bovine, porcine and small ruminant species, specifically, sheep and goats. Sources from the Junta de Andalucía indicated that priority will be given to extensive farms considered priority, shared ownership, ecological, located in municipal terms with natural mountain difficulties or other areas with difficulties, in areas other than those of mountains or within the Nature 2000 Network.
At the turn of October and November this year, domestic suppliers for live beef received PLN 11.04/kg, more by 1% than a week earlier and by 2% than a month ago. Compared to last year's quotations, the price of cattle for slaughter increased by 22%. On the EU market, as in Poland, there is a systematic increase in the average purchase prices of live cattle. On October 31 - November 6, 2022, in the EU, R3 slaughter cattle were purchased at EUR 498.51/100 kg of chilled slaughter weight, which is 0.4% more expensive than in the previous week, 1% more than a month ago and 20% than last year. The price of this class of cattle in Poland was close to the EU average and amounted to EUR 497.94/100 kg. Prices lower than in Poland were obtained in the Netherlands, EUR 462.50/100 kg and Ireland, EUR 459.60/100 kg, and higher, in France, EUR 520.79/100 kg, Germany, EUR 515.86/100 kg, in Italy 513, EUR 79/100 kg and in Spain EUR 505.77/100 kg. Quarters compensated from bulls up to 2 years old were sold at PLN 21.84/kg , ie PLN 0.04/kg more than in the previous week. The price of this assortment was 22% higher than in the previous year.
Poland: The Polish President Signed the Act on the Identification and Registration of Animals
President Andrzej Duda signed the Act on the identification and registration of animals, which implements EU regulations into Polish law among others and assumes the takeover by ARMA of the register of equidae, as well as the creation of a register of deer and camelids. The main purpose of the act passed by the Sejm is "to ensure the uniform functioning of the animal identification and registration system as an important link in combating infectious animal diseases” informed the press office of the Chancellery of the President in a Thursday communiqué.
Argentina: Cow Values Recover After Two Months of Decline
In recent weeks, a partial recovery in the value of the cow was observed after almost two months of abrupt decline. Even with lukewarm signals from the foreign market, the industry began to affirm its pace in purchases in the face of an already quite limited supply. Having touched a floor at the end of October in the Mercado Agroganadero (MAG), the canned cow managed to recover almost 30% of what has been lost since the beginning of September. At the close of last week, the floor for the category was firming around $170 per kilo, which reflects an improvement of about $20, 13% compared to the lows recorded just three weeks ago. In the first 10 months of the year, the slaughter of cows was almost 2.06 million head, a volume significantly higher than that registered in the same period last year, with 1.8 million head. Although last year the slaughter of cows was strongly affected by the export tax, in the historical comparison 2022 is also among the years with the highest slaughter of cows, only surpassed by the records of the years 2008/ 09 and 2018/19, with averages that reached 2.6 and 2.2 million heads, respectively. Measured in relative terms to the initial stock registered for the category, the current ratio of slaughter over stock shows some 9.1% points, against 9.9 points in 2019 and maximums of 10.2 and 12.5% points reached during the liquidation in 2008 and 2009, which will leave more than 3 million fewer cows in stock.
Argentina: The Cattle Business Needs New Rains and More Export Demand to Recover Profitability
In addition to the lower Chinese purchases, the livestock activity must deal with the lack of humidity that affects the pastures and that could delay the entry of early corn. Luckily for the ranchers, last weekend it rained in several productive areas, which may cause a neutralisation of the course of free fall in prices that has taken place since April. At the beginning of November, a kilo of steers had reached a dangerous situation, being below the average for 2005/2021, according to calculations by Ignacio Iriarte, director of Informe Ganadero. Likewise, the situation of livestock continues to be complicated. Rump & Loin Hilton fell from $17,000 a ton in April to $9,000 today (-47%). The average number of cuts destined for China lost 35%: the shank and the shoulder fell 38%; the cuts of cows, from 33 to 35%, and the ball and the square, 31%. The Asian giant needs to digest the meat stocks purchased in recent months and must ease the restrictions imposed on the population in the fight against Covid, which paralyzed the country. The perfect storm is completed with a steer slaughter that increased 8.3% in October compared to the same date last year. The avalanche of supply was mainly a consequence of the dry season, which imposed massive forced sales on grazing winter farmers, while the corrals continue to operate at a high rate because many producers ran out of grass and cannot get fields for rent. As of November 1st, the stocks in the feedlots amounted to 1.7 million heads, a figure lower than that of July, but higher than what the market expected for this date, which was 1.4 million heads. However, this activity, which generates strong negative margins, is approaching another precipice in the coming months: that there will not be enough early corn for fattening cattle, pigs and chickens, and that this could catapult prices to prohibitive levels. Thus, a much worse grain/meat ratio than the current one could be registered. The low prices of fat cattle had an impact on the market for bellies. Fat cows are selling for $30/40 per kilo less than they were worth in August due to the Chinese withdrawal.
Argentina: Beef Cattle Prices Continue to Fall
The price of cattle in Argentina continues to fall, with fat cattle below the historical average between 2005 and 2021. According to a report by the Federation of Regional Refrigeration Industries of Argentina (Fifra), the calf has had a 31% drop in prices since May. The entity explains that the problem is that internal demand cannot grow and external demand has collapsed, both in volume and in prices. Fifra explains that, in terms of supply, everything depends on heavy and widespread rains, which would determine a lower offer for several months. In the case of exports, everything depends on China absorbing the large stocks of meat sold and on the authorities reviewing or relaxing the strict covid-zero policy.
Paraguay: Steer Accumulates 40 Cents in Three Weeks
In the last seven days, there was a rise of 15 cents in the price of the national steer, since it reached USD 3.35. In total, in the last three weeks the farm has been showing a strong recovery, since it already added 40 cents. Valor Carne points out that after the latest behaviour of the Mercosur steer, the maximum price gap between countries was reduced to 6%. The report clarifies that a difference of less than two digits has not been registered since 2017 in the region's squares. In Argentina, the price of the steer was USD 3.56, the same value as last week. The increase of $6 in the offers of the refrigerators compensated the weekly devaluation that maintained its rhythm of 6% per month, indicates the consultant. In the case of the Uruguayan farm, the price this week is USD 3.55, a WoW increase of 9 cents. The consignees speak of a more active demand, if we analyse that in three weeks it recovered 20 cents from the floor reached, after having fallen USD 2.20 since mid-2022. In the last seven days, the Brazilian steer traded at USD 3.52, a difference of 3 cents, compared to the previous report. In the market there was an increase of less than 1% in the internal price that was neutralised by the devaluation of almost two points, going from 5.28 to 5.37 per dollar.
Chile: Prices of Animals at Livestock Fairs
According to data provided by PASO, the real prices of animals at livestock fairs, until October fat steers registered a drop of 3% compared to 2021, reaching an average price between January and September of $2,139/kilo. The opposite situation is observed for the fat cow and calf categories, which registered increases of 13.7% and 9%, with prices reaching $1,459/kg and $2,079/kg, respectively. At the regional level, the variations in the monthly prices of the fat steer were negative, but of different magnitude between the regions. The Araucanía region had a variation of -4.3%, reaching $2,097Kg, while the Los Ríos region registered $1,794/kg with a variation of -6.6%, and finally the Los Lagos region its prices decreased by -0.9%, reaching $1,946/kg. Regarding exports, these reached 21,693 tons, accumulated up to October, which represents an increase of 52% compared to the volume shipped in the same period of 2021. The average export price was USD 5,416/ton, 23% higher than the same period in 2021. A decrease in the Mercosur supply is projected for the beginning of 2023, due to a decrease in the number of animals that would enter the feedlot, due to the drop in the regional price and the maintenance of high grain prices.
Russia: The Problem of the Meat Industry Can Be Solved by Investments
One of the key problems of Russian livestock farms is the lack of access to money, Roman Kostyuk, director of the National Union of Beef Producers (NSPG) of Russia, said on November 18 as part of the round table "Problems of beef farming in Russia" organised by APK Expert. There are about 92 million head of cattle in the United States, of which farms make up 60% of the livestock. This is a huge amount of investment that has enabled small farmers to buy 40 million head of livestock, said the director of the NSPG. “The problem for Russia is that people don’t have the money to buy livestock to catch up with Miratorg, no access, no chance, nothing. Grants at best keep the livestock at -1.5%, otherwise it would be -5%. But they do not solve the problem of growth,” Kostyuk said. Earlier, Roman Kostyuk said that in Russia there is virtually no production of beef meat as an industry. Russia does not cover the domestic need for beef and imports at least 300 thousand tons of meat annually.
Turkey: Heifer Purchase Support Increased by 100%
Producers continue to be supported in agriculture and animal husbandry. The Minister of Agriculture and Forestry, Kirişci stated that the upper limit of support has been increased by 100% within the scope of heifer purchase support. Pregnant heifer support upper limit increased from 20 thousand liras to 40 thousand liras. The place where the heifers are sourced is important. 50% of the price per heifer/ buffalo will be paid if the animals are born in the country and are procured from heifer centres, and 40% if they are obtained from other supply centres.
In order to successfully implement Pingle County's 2022 grass-roots agricultural technology extension system reform and construction subsidy project, improve the breeding level and breeding benefits of farmers in our county, and consolidate the achievements of poverty alleviation, on November 15, the Pingle County Animal Husbandry Station organised cattle in the county Sheep farmers went to Fujie Family Farm in Pingle County to hold a training course on cattle and sheep breeding technology. This training course was taught by Wu Cuihong (senior animal pastor) and Bin Xuemei (animal pastor). The main training content is for breeding owners in 2022 Push technology "water saving and pollution control ecological breeding technology" technical points analysis, cattle and sheep breeding winter feed storage technical points, visit Fuji sheep farm and explain and discuss the site selection and layout of mutton sheep breeding, barn construction design, ewe selection, daily production Management and other content. A total of 37 cattle and sheep farmers participated in the training. The participating farmers said that the training course was rich and full of dry goods. process and details, to better receive new knowledge.
China: Prepares to Resume Shopping and Improves the Cow Prices in Argentina
The price of the cow began to show a rebound and had an improvement of 13% in relation to the prices of the last three weeks. In the last auctions in the Mercado de Cañuelas, this category was affirmed over $170 per kilo, an improvement of $20 over the period analysed. This improvement occurs while China began to give some signs in relation to a gradual relaxation in the control measures of Covid. In the domestic market and exports, the annual balance of bovine meat shows red prices in the Asian giant, which concentrates the bulk of Argentine exports, worries the meat processing industry. In recent months, prices for that destination have fallen from US$6,000 per ton to US$4,500.
Ukraine: Live Cattle Exports Earned 14.6% More in 10 Months
In January-October 2022, Ukraine exported live cattle worth $28.2 million, 14.6% more than in the same period last year. Egypt ( 67.2%), Lebanon ( 17.1%), Jordan ( 12.8%) bought the most domestic live cattle during 10 months of this year. Imports of live cattle in January-October 2022 fell by 40.5% compared to the same period last year, to $3.4 million. During the 10 months of 2022, live cattle were mostly bought in Slovakia ( 31.1%), the Czech Republic ( 19.9%) and Denmark ( 18.2%). As reported, by the end of the year, a 1-2% decrease in the number of cows is likely to occur.
Bulgaria: Male Calf Aid Won’t Reach Cattle Farmers
The industry is demanding an urgent change to the €15,000 ceiling. On November 22, the reception for the third emergency aid due to the war in Ukraine began, the budget of which was formed by the transfer of 5% of the PRDP money for the last two years. The pleas of the breeders were heard and for the first time support was provided for male calves from 6 to 24 months. The inclusion of the young animals was at the suggestion of the industry, but in practice no beef cattle sector can apply for the aid created for the sector, which they describe as "absurd and a huge mockery". The solution to the problem lies in Regulation 3 of November 15, 2022, promulgated in issue 92 of the State Gazette for the implementation of sub-measure 22.1 "Extraordinary temporary support for farmers who are particularly affected by the consequences of the Russian invasion of Ukraine" of the PRSR 2014- 2020. The owners emphasize that the two aids are different, one state and the other European, and they believe that someone intentionally or due to incompetence tied them together, without any reason in this. The industry is demanding an urgent change to Art. 13, paragraph 3 of Regulation 3, especially since applications are submitted for a few more days until December 5, 2022. In order to be heard by the BKMZ, they sent their last call for help in an open letter to the president, the prime minister, the minister of agriculture and the executive director of the DFZ.
Vietnam: Vu Quang Has Vaccinated More Than 47,000 Cattle
According to the statistics of the Center for Science and Technology Application and Protection of Plants and Animals in Vu Quang district, in the second phase, the whole district had more than 47,000 cattle vaccinated against foot-and-mouth disease, bacteremia, and inflammation, skin rash and African swine fever. In which, the herd of buffaloes and cows has been injected with 8,000/11,381 heads (reaching 70.2% of the plan); pigs injected 26,020/36,048 heads (reaching 72.2% of the plan). Vaccination will be carried out "rolling" from one locality to another. Currently, localities and the agricultural sector in Vu Quang are promoting information and propaganda, strengthening the inspection and preservation of vaccines, and fully preparing human resources, facilities and experience. The cost to organise vaccination is high and is expected to be completed on November 27. In particular, people must focus on monitoring the health of animals after vaccination, feeding them with adequate nutrients, keeping the barns clean, and not buying or keeping them in captivity with cattle showing signs of diseases.
Vietnam: The Buffalo Capital of the North Faced Unprecedented Difficulties
According to the Department of Agriculture and Rural Development of Tuyen Quang province, the total buffalo herd in the province is now 90,300 heads, down 2% compared to the same period last year. The reason for this decrease is that recently, the price of commercial buffalo has been low, many livestock farmers have suffered heavy losses, so they have not invested in raising further. Meanwhile, market demand has not shown signs of improvement. One of the main reasons for the low price of buffalo in recent years is that it is difficult to trade through China, while domestic consumption is not much because of the food rations of Vietnamese people, the demand for ‘not much use of buffalo meat’. To maintain a stable herd, the Agriculture and Rural Development Department of Tuyen Quang province recommends that households perform well on care, vaccination to protect the health of their livestock, try to listen to the market, and avoid selling massively. great impact on the household economy. Because the cost of feed for buffalo is not too expensive, only by-products such as straw, rice straw, sugar cane leaves, corn leaves. Moreover, buffalo can still exploit pulling power to serve agricultural production. The Agriculture and Rural Development sector of Tuyen Quang province is also promoting finding markets to connect with the consumption of buffalo meat products for farmers.
Uzbekistan: Openning the Market of the Importation of Bovine Genetics From Argentina
Senasa and the State Veterinary and Livestock Development Committee of Uzbekistan signed the health certificates and a cooperation agreement. In this way, two and a half years of negotiations concluded and Argentina added a new market for the export of nationally produced bovine semen and embryos. Acerbi and Khamraev also signed a broad mutual cooperation memorandum to advance the exchange of information related to animal health and food safety for which they will establish a working group.
Fresh Beef
Global: Meat Trade Will Fall In 2022 According to FAO
The international meat trade could close 2022 with a slight contraction of 0.8% compared to the records corresponding to the previous year, with which 42 million tons of pork, bovine, poultry and sheep products would be mobilised. In the case of bovine meat, the international organisation predicted that 12.7MMT will be sold globally, which would reflect a growth of 5.2%.
According to data from the Australian Bureau of Statistics, cattle slaughter in Australia (excluding calves) totaled 1.56 million head in Q3 2022, which represents an increase of 4.5% quarter-over-quarter but a decline of 2.5% YoY. This was the lowest number of cattle slaughtered for the third quarter since 1985. During the first three quarters of 2022, cattle slaughter totaled 4.39 million head, a drop of 3.6% compared to the same period in 2021. During the first three quarters of the year, Australian beef production totaled 1.4 million mt, down 14% compared to the same period in 2021. (Continue Reading)
Argentina: How Much the Grill Cuts Increased and Where Should You Buy
A year ago, in October 2021, the only cut of beef that reached $1,000 per kilo was the loin, considered a premium cut on the Argentine table. Today only 7 of the 27 cuts surveyed by the Institute for the Promotion of Argentine Beef (IPCVA) can be obtained in butcher shops and supermarkets for the value of a "hornero". It is a quite graphic explanation of how inflation impacts, which this year will close around 100% according to the majority of economic consultants. On average, meat registered an increase of 71.8% in the last year, more than sixteen points below the annual inflation measured by INDEC in October, which stood at 88%.
Argentina: Despite the Fall in International Meat Prices, Exports Still Show Favorable Numbers
The price of the exported ton has not rebounded since May. In the case of China, its average price fell by almost US$1,000. In a scenario of retraction in beef export prices, this value chain still maintains a positive balance in foreign trade. According to the ABC Meat Export Consortium, in the first ten months of the year, shipments grew 10% in volume and 33.6% in billing. According to the entity, in that period 751,844 tons were dispatched, for a value of US$ 3,024 million. These figures were generated despite the fact that in the last six months there was a downward trend in shipments made to the main destinations. The average US$ 5,026 per ton obtained in the month of October is US$ 1,300 per ton below the maximum registered in the month of April, according to estimates by exporters. This value was 8.4% lower than that obtained in September and 13% lower than the average price of October 2021, which had been US$ 5,776. If the figures for last month are compared, sales in October grew by 25.5% YoY in volume and registered an increase in turnover of 9.2%. Between January and October, China represented 76.5% of the volumes exported, with a drop in price per ton of almost US$ 1,000. In May, its value was US$5,900, while last month operations averaged US$4,970 per ton. The European market is experiencing a similar situation, after the drop in the price of the Hilton Quota. An item that showed a good performance was giblets and preparations based on bovine meat. In the first ten months of 2022, sales climbed to a volume of 99.5 thousand tons, for a value of US$ 198.9 million. The average export price of these products was slightly above US$1,800 per ton, with peaks close to US$4,200 for bovine tongues.
Mexico: The Value of Mexican Livestock Production Rises by Almost 20%
During the first nine months of 2022, the Mexican livestock sector generated 18 million tons of animal protein, this taking into account pork, bovine, and poultry meat, as well as eggs for dishes and milk. The figure indicated a YoY growth of 2.4%. According to the Consulting Group of Agricultural Markets (GCMA), the value of national production was located at 19,949 million dollars, reflecting an increase of 19.7% compared to the same period last year. Consumption rose 2%, imports fell 1% and exports dropped something close to 9%. Regarding apparent consumption, the volume amounted to 21.7 mt, with an increase of 2%, however, imports experienced a contraction in the order of 1%, up to 4.2 mt.
Uruguay: Beef Prices in W47 as China Confined an Important Transportation Hub
China has confined an important transportation hub in the south of the country, and some experts from Uruguay fear that it may return to stricter measures from a health point of view due to COVID-19, something that has pushed down the price of meat. The demand for meat in W47 had a higher level of consultations for both beef and sheep meat, although some experts warn of a more cautious attitude in W47 compared to W46. CFR Prices from Uruguay for W47 are chuck and blade around USD 4,500/ton, round cuts at USD 5,500/ton, eye round at USD 6,700/ton, and shin and shank at USD 6,500/ton.
UK: Pre-pandemic Trends Return to Beef Trade
UK beef exports continued to ease MoM in September, with shipments totalling 11,900 tonnes (volume includes fresh and frozen beef, processed beef and offal). However, volumes were up 7% YoY. This brings the YTD (Jan-Sep) volume of exported beef to 119,600 tonnes, a 23% increase compared to the same period last year, but 7% behind the equivalent pre-Brexit volumes of 2020.
Chile: Meat Production Falls by 10% Compared to the Same Period of 2021
According to data provided by PASO, meat production up to the month of September registered a 10% decline in relation to the same period in 2021, reaching a total of 145,646 tons. Total slaughter contracted 10.8%, reaching a total of 563,830 slaughtered heads. The categories that decreased most strongly are beef cows (26.3%), heifers (11.9%) and steers (10.9%). Regarding foreign trade, it can be seen that imports of bovine meat until the month of October accumulated a contraction of 18.3% compared to 2021, reaching a total of 196,150 tons. The main meat supplying countries are Paraguay (52%), Brazil (36%) and Argentina (9%). The average import price stood at USD 5,979/ton, 4.5% higher than in 2021. International reports indicate a recovery of the European market for high-quality meat, as well as the Chinese market, which seems to be relaxing its strict measures as a result of Covid 19.
Russia: Achievement of 100.8% Self-Sufficiency in Meat in 2022
The level of Russia's self-sufficiency in meat products this year has already exceeded 100%, Russian President Vladimir Putin said on Monday at an event on the development of domestic selection and genetics. The President cited indicators of the level of self-sufficiency of the Russian Federation in domestic breeding products. According to preliminary estimates, by the end of 2022, the country's self-sufficiency in dairy cattle will be 64%, and in beef cattle - 98%.
Russia has submitted a proposal to the Eurasian Economic Commission (EEC) to extend the quota for duty-free import of beef, according to the EEC materials. It is noted that the proposed measure is aimed at balancing the cattle meat market in the Russian Federation, as well as stabilising prices for meat products. Its discussion, according to the materials, will be held for 10 days until December 11. The Ministry of Agriculture of the Russian Federation at the end of October reported that duty-free imports of beef to the Russian Federation could be extended for the next year. The decision to extend the zero-duty tariff exemptions for beef was made at a meeting of the subcommittee on customs-tariff and non-tariff regulation. Currently, the size of such a quota is 200 thousand tons per year, it is valid until December 31. In addition, the tariff exemption for the import of frozen pork was 100,000 tons; its extension was not planned.
Russia: Meat Production in January-October Increased by 7.1%
Meat production in Russia in January-October 2022 increased by 7.1% compared to the same period in 2021 and amounted to 2.75 million tons. "Meat of cattle, pork, lamb, goat meat, horse meat and other animals in October 2022 produced 289.3 thousand tons, which is more than in October 2021 and September 2022, by 6% and by 2.3% respectively. For the ten months of 2022, production increased by 7.1% compared to January-October 2021, amounting to 2.75 million tons," the ministry said. According to the statistics, 364.8 thousand tons of meat and meat-containing semi-finished products, chilled or frozen, were produced in October, which is 2% and 2.5% less than in October 2021 and September 2022, respectively. For ten months of 2022, 3.6 million tons of them were produced, which is 0.8% more than in January-October 2021.
China: Total Amount of Beef Imports Are Expected to Reach a New Record in 2022
The General Administration of Customs China (GACC) recently issued data showing that the volume and quantity figures are relatively similar from September 2022. Based on data from the previous ten months, the overall amount of beef imports is expected to reach a new high in 2022, reaching 250K MT, accounting for USD 1.6B (CNY 11.5B), and the average price of USD 6,496/MT (CNY 45.9K/MT) in October 2022 while the figures for September 2022 are 250K MT, accounting for USD 1.6B (CNY 11.4B), and the average price of USD 6,454/MT (CNY 45.6K/MT). Meanwhile, there is a significant spot commodity inventory on the market since the continued slowdown in consumption. The market is worried about how long it will take to consume the inventory and whether beef prices will collapse.
Ukraine: The Export of Beef Can Compensate for Its Low Consumption
Currently, one of the problems of the Ukrainian meat producer during export is the European procedure for regulating the necessary documentation for the transportation of beef and pork. According to Maksym Hopka, this does not give Ukraine the opportunity to export beef in such volumes that would allow the industry to develop stably. As reported, in October the average consumer price for beef in Ukraine increased to UAH 203.45/kg. At the same time, world prices for beef decreased somewhat in October.
Colombia: 2022 Will Also Be the Year With the Highest Imports of Beef
The Office of Planning and Economic Research of Fedegán-FNG, based on DANE records, reported that in the first 3 quarters of 2022, 8,972 tons of beef and offal were imported for a CIF value of USD 42,330,000. This is an increase of 33% compared to the 6,745 t obtained in the period January-September 2021, while it is 44.1% higher than its cost, which was USD 29.4 million. Compared to the last year before the pandemic, the increase is 21.3% to the volume of 7,397 t until September 2019, but the value has almost doubled, exceeding 81.5% of 23.3 million dollars. What did these imports cost? In fact, the USD 42.3 million spent in 9 months of 2022 has already far exceeded the annual costs of 2018 (USD 27 million), 2019 (USD 32.8 million) and 2020 (USD 27.1 million) . And they are only 9% less than the USD 46.5 million registered last year. Based on these data, it is clear that the mid-year forecasts will come true and 2022 will become the year with the highest meat imports. This increase is observed when looking at the average CIF value per ton. While in 2018 and 2019 it was around 3,200 dollars, in 2020 it rose to USD 4,060 and in 2021 to USD 4,380. So far in 2022 , each ton has cost an average of USD 4,720.
Egypt: Meat Prices Today in the Market
Meat prices rose in the markets on Sunday 11-27-2022. The price per kilo for the consumer jumped by 20 pounds, to record a kilo, of average quality, 160 pounds instead of 140 pounds, according to traders in the markets. The merchants added that the price of dairy-producing buffalo jumped by 5 thousand pounds per head, to record 45 thousand pounds, compared to 40 thousand pounds a few days ago, and a kilo of “standing” was recorded in bovine calves and buffaloes. A kilo of “standing” in males ranged between 77 to 80 pounds. An increase of 3 pounds, and the price per kilo of buffalo ranges from 70 to 76 pounds.
Israel: Sustainability of Bullish Beef Prices
Unlike Chile and Russia, which have been decreasing their participation in the bovine meat trade with Paraguay, at the end of October of this year the average price paid by Israel for the national product reached USD 6,466 per ton, an increase of 12.3%, compared to the same period in 2021. This improvement in the price in turn drove an increase of USD 3.3 million in the currencies generated by shipments to that market, according to Productiva's analysis based on data from the National Service for Quality and Animal Health (Senacsa). The fifth most important market for national red protein paid USD 6,466 on average for each ton of this product, a jump of USD 707 (12.3%) compared to the first ten months of 2021, when this country paid USD 5759 a ton. Chile and Russia, the first and second largest destinations for meat, however, have been dropping their share, according to Senacsa records. This motivated the increase in income by 4%, since exports to this destination generated USD 91.6 million, USD 3.3 million more than USD 88.3 million registered in the same period of 2021. The improvement in the price offset the 8% drop in the volume exported to Israel until October, equivalent to 1,171 tons of beef. By the tenth month, Paraguay exported 14,168 tons, while in the same period of 2021 shipments reached 15,339 tons. Paraguay exported at the end of October 283,932 tons of bovine meat for USD 1,476.1 million, an increase in income of 7.5% and 0.25% in volume, in relation to shipments in the same period of 2021 that reached 283 214 tons after the USD 1,372.9 million generated by this activity. In total, the national product had access to 51 markets. Until last month, Israel's participation as a destination for Paraguayan meat was 6% in terms of FOB value, which allowed it to position itself as the fifth most important market. Chile continues to lead the top 10, followed by Russia, Brazil, Taiwan, Israel, Uruguay, Kuwait, Maritime Supply, Italy and Switzerland.
Tajikistan: Meat and Milk Production Increased
Meat production for the ten months of this year reached 227,000 tons and 760,000 tons of milk, the Ministry of Agriculture of the republic said on November 20, the press service of the department reports. It is noted that over the ten months of this year, meat production increased by 12 thousand tons, and milk by 16.4 thousand tons compared to the same period last year. The department indicated that in order to develop livestock breeding and meet demand in the domestic market, exhibitions and sales of thoroughbred livestock are regularly held. The ministry also added that in the first ten months of this year, the number of cattle increased by 102 thousand heads in Tajikistan compared to the same period last year. According to the latest data, about 2.5 million heads of cattle are grown in the republic. As well as more than 6 million goats and sheep.
Frozen Beef
China: Increased Volume of Frozen Beef Imports in October
China imported 253,717 tons of beef in October, slightly more than 5,000 tons above September, although below the more than 270,000 that entered the country in July and August. Practically all of what was entered in October was frozen meat, with only 3,902 tons of the cooled product. Of the 249,816 frozen tons, 30,689 tons were bone-in products that entered at an average value of US$3,291 per ton, and 218,666 tons of boneless meat at an average of US$6,884. The main supplier of bone-in meat was Uruguay with 9,087 tons at an average value of US$ 2,982. In turn, the main supplier of frozen boneless meat was Brazil with 130,168 tons at an average value of US$ 6,681 per ton. In addition, 2,392 tons of offal arrived in China, for which Uruguay is also the main supplier with 781 tons. Taking into account the volumes shipped from Mercosur in September and October, the expectation is that imports in November will once again be large, although probably somewhat lower than in October due to lower exports from Oceania countries.
