W6: Weekly Beef Update
Live Beef
US: The Number of Cattle Decreased by 3% (Feb 7)
The data were provided by the National Service of Agricultural Statistics (NASS), which indicated that the 12-month calving cow population was 38.3M, down 3% from 39.4M a year earlier. Meanwhile, the number of cattle weighing 227kg (500 pounds) or more as of January 1, 2023 was 19.9M head, down 4% from January 1, 2022. Calves under 227kg totaled 13.6M, down 3% from a year earlier. The number of dairy cows in the United States is 9.4M, which is slightly more than in the previous year. As of Jan. 1, 2023, the US slaughter cattle and calf population across all feedlots was 14.2M head, down 4% from Jan. 1, 2022, according to the report.
US: Cattle Futures Hit Highest Since 2015 (Feb 7)
Chicago Mercantile Exchange (CME) cattle futures rose for the 11th session in a row on Feb 6, hitting their highest in more than seven years as tight supplies continued to fuel a rally, reported Reuters. Strength in the cash market added to the gains in cattle futures. CME benchmark April live cattle futures settled up 0.35 cent at USD 3,626.05/MT (164.475 cents per pound) after peaking at a new contract high of USD 3,628.25/MT (164.575 cents). April live cattle have hit a contract high for three sessions in a row. Front-month February live cattle ended up 0.55 cent at USD 3,545.58/MT (160.825 cents) after hitting its contract high of 161 cents.
Australia: During W6 Beef Cattle Prices Continue to Ease (Feb 11)
The EYCI dropped while the East Coast of Australia saw a healthy number of processors. The easing in cattle prices is related to an increase in weekly slaughter numbers driven by processor demand, and weekly slaughter numbers have increased from 78.7K heads in W5 to just under 109K heads in W6 for the first time since 2020.
Ireland: Minister Considering Taking Forward a Genotyping Cattle Proposal (Feb 9)
The Department of Agriculture, Food and the Marine (DAFM) is considering how proposals around genotyping the national herd could be achieved with regards to the necessary funding, Minister Charlie McConalogue has said. The minister is ambitious to ensure that the Irish beef herd is the first in the world to be fully genotyped. He said there is an “urgency” to deliver, however a serious amount of work has to be undertaken. The potential of genotyping to deliver verifiable emissions reductions and economic benefits for farmers is being assessed and identified by the DAFM, Minister McConalogue said.
Poland: Meat Market (Feb 8)
Domestic suppliers for slaughter cattle received USD 2.37/kg (PLN 10.65), which is 1% less than in the previous week, but 1% more than a month ago. At the same time, live beef was 11% more expensive than in the comparable week of 2022. Between Jan 16-22, compensated beef quarters from bulls up to 2 years old, as in the previous week, were sold at USD 4.76/kg (PLN 21.38). The price of quarters was lower by 1% than a month ago, but higher by 11% than a year ago.
Germany: Beef Slaughter Volume Decreased by 8.2% (Feb 8)
The number of cattle slaughtered commercially in 2022 fell by 7.8% compared to 2021 to almost 3M animals. This was mainly due to the decline in the number of cows slaughtered by 10.1% to 1M animals and the number of bulls slaughtered by 6.6% to 1.1M animals. The total slaughter volume of 985K MT of beef was 8.2% below the previous year's result.
Brazil: Rio Grande Do Sul Is Recognized by Chile as a Foot-And-Mouth Free Area Without Vaccination (Feb 7)
Chile's decision to recognize Rio Grande do Sul as an area free of foot-and-mouth disease without vaccination opens up a market for meat produced in the state, said Governor Eduardo Leite (PSDB). The World Organization for Animal Health (OIE) recognized in May 2021 RS as free of the disease without vaccination. Chile's decision was published in the country's Official Gazette. According to Chile, the recognition will be valid as long as “the sanitary, prevention and control conditions implemented by the Federative Republic of Brazil are maintained”. The assessment was confirmed in inspections carried out by the Chilean authorities. In 2022, Brazil exported approximately 71.86K MT of beef to Chile, with revenues of USD 360.1M, according to data from the Brazilian Association of Frigorificos (Abrafrigo).
Brazil: Brazilian Angus Association Wants to Expand Dialogue With Minister of Agriculture (Feb 7)
The Minister of Agriculture, Carlos Fávaro, reaffirmed his willingness to support the demands of livestock, during the inauguration of the new board of directors of the Brazilian Association of Zebu Breeders (ABCZ), in Uberaba (MG). At the meeting, he spoke about the federal government's intention to offer lines of credit with accessible interest rates to cattle ranchers, in order to encourage production. In a note, Anguns reported that Fávaro defended security on the farms, with the right to own weapons in the countryside, and punishment, according to the law, for invasions of productive land.
Brazil: Beginning of W6 Indicates High for Fat Ox Arroba in São Paulo (Feb 7)
After registering an increase in the arroba of fat cattle at the close on Feb 3, the price of fat cattle, cows and heifers started the week stable. Slaughter scales are comfortable for most meatpacking industries. At Goiania, GO, there was an increase in supply for the period, the price of fat cattle and fat cows fell by USD 0.57/@ (R$3.00). For Bone-in meat, the beginning of February, the end of school holidays and the receipt of wages moved the beef market. With a good expectation of retail sales for the first days of the month, most bone-in products had positive adjustments, especially the front 1x1, with an increase of 3.8% in the weekly comparison. Thus, in the last seven days, the price of the married carcass of castrated cattle rose 1.4%, while for whole cattle, it rose to a high of 1.7%.
Brazil: The Price of “Chinese Cattle” Rises in São Paulo (Feb 9)
The market has improved compared to the previous week and, after the price rose on Feb 7, the picture is one of stability. The “Chinese cattle” increased by USD 0.96/@ (R$5.00) in a day-to-day comparison. For North - MG, the buying end opened the market by offering USD 0.96/@ (R$5.00) less for fat ox, cow and heifer, compared to Feb 7. In Goiania - GO, cow prices dropped by USD 0.57/@ (R$3.00) and heifer and fat cattle prices remained stable in a day-to-day comparison.
Spain: Detects an Atypical Case of Mad Cow Disease (Feb 10)
Spain has detected atypical bovine spongiform encephalopathy (BSE) in a dead cow in northwest Galicia, the World Organization for Animal Health (OIE) said on Feb 10. The disease, commonly called mad cow disease, was discovered after a 22-year-old cow was euthanized due to signs of illness unrelated to BSE, the OIE said, citing information from Spanish authorities. The case, which was isolated, "did not enter the food chain and therefore did not pose any risk to public health or require any preventive health measures," Galicia's regional health service said. A case of mad cow disease, also caused by old age, was found in the Netherlands in W5. The atypical case of mad cow disease occurs sporadically and spontaneously in older cows, while the other variant, the classic and dreaded type of infection, is usually caused by contaminated animal feed.
Argentina: Promoting the Mercosur Steer (Feb 9)
In Argentina, the price of the export steer increased USD 52 cents in the week and accumulated a rise of 94 cents (26%) in the last two. The scarce supply and the firm international demand are the main bullish arguments. The export steer is trading in W6 at USD 4.57/kg carcass, considering the official exchange rate and adding the 9% tax on meat exports. In Brazil the trend was the opposite. There was stability in prices in reais, but the 2.5% devaluation of this currency caused the fat boi to fall 8 cents to USD 3.21, consolidating itself as the lowest price in the region.
New Zealand: Sale-Yard Prices of Meat for W5 (Feb 11)
In New Zealand, good grazing conditions caused farmers to keep their stock back, waiting for stronger farmgate prices, causing lower sale yard volumes than usual during W5. The average local slaughter and export price trends for W5 in New Zealand for W5 vs. W4 stood as follows:
Steer NI P2, 300kg - USD 3.63/kg (NZD 5.76/kg) vs. USD 3.62/kg (NZD 5.75/kg) - 0.0% marginal increase
Export Bull, USA - USD 5.12/kg (NZD 8.12/kg) vs. USD 5.12/kg (NZD 8.12/kg) - 0% unchanged
UK: Great Britain Cattle Prices Rise Into the New Year (Feb 9)
Following on from historic highs in December, GB cattle prices continued to rise in January 2023. The GB all-prime deadweight cattle price averaged 454.7p/kg during the month, up 13p from December’s average and up 48p YoY. GB steer prices averaged 456.2p/kg overall in January, 12p ahead of December and up 49p on the average recorded for January 2022. Weekly prices appreciated continuously as the month progressed, up 15p from the first week to the last. For heifers, weekly prices saw steeper growth, up 17p during January, with a monthly average of 454.8p/kg. This was a further increase from December’s average, by 14p, and up 48p compared to January 2022. Growth in average young bull prices showed more fluctuation but remained on an upward trajectory, peaking in the final week at 440.3p/kg. For the month, the measure averaged 435.9p/kg. This was higher than averages for both December and January 2022, up 15p and 47p, respectively. Cow prices increased 21p during the month of January, ending at a high of 366.8p/kg. The average overall cow price for January was 358.1p/kg, up 30p from December. The price increase year-on-year for cows was 86p on average.
Hungary: The Numbers of the Domestic Cattle in Hungarian Market Are on the Decline (Feb 8)
In 2022, the total slaughter of cattle and cows decreased by 10% compared to 2021 in Hungary. Hungarian live cattle exports decreased by 2% and live cattle imports decreased by 4% in January-November 2022 compared to the same period in 2021. The volume of beef exports also decreased by 19%, but at the same time, its value increased by 19%. The volume of beef imports increased by 1%, while its value increased by 42% in the observed period.
Kazakhstan: More Than 13K Farm Animals in Kazakhstan Are Under Quarantine (Feb 8)
In Kazakhstan, more than 13K animals are in quarantine. This was reported by the press service of the Ministry of Agriculture of the Republic of Kazakhstan. “As of February 6, 2023, 13,033 heads were quarantined in the republic, of which 10,625 cattle and 2,408 small cattle. For 474 heads of cattle, an export permit was obtained. 217 heads of cattle have already been exported,” the ministry said in a statement.
Bolivia: Foreseeing an Increase in the Cattle Herd (Feb 8)
In Bolivia, the bovine cattle herd has been growing around 3.5% annually, however, it has the potential to multiply this growth in the following years, according to what the president of the Federation of Cattlemen of Santa Cruz (Fegasacruz) told Valor Agro. First of all, it should be noted that the Bolivian cattle herd reached 10.654M animal heads at the end of 2022, according to official data from institutions oriented to the sector. In this regard, Castedo explained that this figure has been increasing by 3.5%/year and that it may even increase even more, due to the fact that there are departments with great capacity for livestock production such as Beni and Santa Cruz de la Sierra, in which jointly contemplates little more than 70% of the bovine herd.
Costs incurred by regulation are analyzed to outweigh environmental benefits. It was found that production losses due to livestock farming environmental regulations increase more in small- and medium-sized Korean cattle farms with less than 50 heads of cattle than in large farms with 100 or more heads. Support policies for small-scale farms should be considered. The results of the ‘Study on Korean Beef Productivity and Related Ripple Effects of Livestock Environmental Regulations’ ordered by the Korean Beef Fund Management Committee (Chairman Min Kyung-cheon, hereinafter referred to as Hanwoo Fund) and conducted by Korea University (Research Director: Professor Ahn Byeong-il) have been announced. The Hanwoo Fund conducted this study to analyze the effects of livestock farming environmental regulations on Korean cattle farm productivity and to analyze the effects of livestock farming environmental regulations on the national economy through mutual comparison of greenhouse gas reduction effects and productivity reductions due to environmental regulations. According to the research team, as a result of analyzing the effect of livestock environmental regulations on Korean cattle farm productivity, the opportunity cost that can occur due to environmental regulations is found to increase the amount of output loss for small-scale farms.
Turkey: The Number of Cattle Decreased in 2022 (Feb 9)
The Turkish Statistical Institute (TUIK) announced the animal production statistics for 2022. Accordingly, the number of cattle decreased by 5.6% in 2022 compared to the previous year and fell to 17.24M. In this period, the number of cattle decreased by 5.6% to 16.85M, and the number of buffaloes decreased by 7.4% to 171.84K.
Jordan: Animal Shelters in Jordan Closed for 14 Days Due to Foot and Mouth Disease (Feb 6)
Jordanian state television, Al Mamlaka, announced that all animal shelters were closed for 14 days after a new type of foot-and-mouth disease (FMD) was detected in the country on Feb 5. According to Al Mamlaka, Jordan's Ministry of Agriculture has decided to temporarily suspend roughage imports from Iraq following the spread of the disease. The ministry reported that it has taken various precautionary measures and has contacted ministries and local governments to move forward on veterinary quarantine, sanitation and vaccination. The ministry also launched a campaign to vaccinate livestock and establish veterinary hospitals.
Morocco: Imports 30K Heads of Cows and Calves From South America (Feb 9)
Aziz Akhannouch, Prime Minister, confirmed that the prices of red meat will decline due to the measures taken, noting that this will enable professionals to import about 30K heads of cows and calves destined for slaughter before Ramadan. This step will ease the pressure on the national herd, in addition to reducing the prices of meat sold by installments, after the abolition of the value-added tax, and stopping the collection of customs duties on the import of cows destined for slaughter. It is expected that Morocco will import more than 30K heads of calves destined for slaughter, from Brazil and Uruguay, which will be reflected in the prices of red meat in the national markets, which will witness a decrease, after it currently exceeds the barrier of USD 9.66/kg (100 dirhams), after the price did not exceed the average of USD 7.25/kg (75 dirhams) in the past.
Venezuela: The Only Country in the American Continent With Foot-And-Mouth Disease (Feb 7)
Venezuela is the only country in the American continent where there are foot-and-mouth disease problems, according to the president of the National Federation of Cattlemen of Venezuela (Fedenaga), Luis Prado. The statement was made by the top leader of the livestock sector during the first meeting of the Fedenaga executive committee in 2023, during which a balance of the situation of the Venezuelan productive sector was presented, where he highlighted the issue of the recovery of the national herd and the sustained increase in the indices of meat consumption per capita.
Mongolia: Affixing Ear Tags to All Cattle (Feb 9)
The Mongolian government ordered ear tags to be attached to all cattle this spring, Khayangaagiin Bolorchuluun, the Mongolian Minister of Food, Agriculture and Light Industry, said on Feb. 9. According to him, such tags will help prevent the theft of livestock, and it will also be easier to fight the spread of infectious diseases in animals with their help. It should be noted that animal husbandry is the basis of the Mongolian economy. It has become a source of income for 40% of the country's nomadic population. According to the ministry, there were 71.1M livestock in the country in 2022, 7.7% of which were cattle.
Bovine diarrhea disease is an important type of disease that seriously affects the healthy growth of cattle, and it is also a type of disease that is more harmful to large-scale cattle breeding. Mild cases of bovine diarrhea disease can easily cause gradual weight loss of cattle, malnutrition, increase feeding costs, reduce the production value and economic benefits of cattle. Severe cases can lead to the death of calves and abortion of pregnant cows. It leads to the death of adult cattle and calves, and the mortality rate is as high as more than 90%. The main causes of cattle diarrhea disease include bacteria, viruses, parasites, improper feeding and management and other physical factors. In order to fully understand the epidemic situation of bovine diarrheal disease in Wuhai city and effectively prevent and control the pathogenic infection and distribution of bovine diarrheal disease. Wuhai city has decided to carry out surveillance of bovine diarrheal disease within the city. The special monitoring plan was completed in February. The samples were mainly collected from calves under 6 months old and bred cattle aged 6-18 months with soft feces and obvious dirt near the anus but clinically asymptomatic cattle. Sick cows with obvious diarrhea symptoms. It is planned to collect 120 serum samples, 360 fecal swabs, 360 nasal swabs, and 120 feces, a total of 960 samples for laboratory monitoring.
Fresh Beef
Global: Red Meat Trade Flows Set to Remain Firm in 2023 (Feb 5)
According to the latest market commentary from Quality Meat Scotland (QMS), increased trade flows are required to bring markets back towards balance. Set against slightly reduced world output, global beef demand is forecast to remain resilient despite economic headwinds, with consumption almost unchanged. For this to happen, mismatch between supply and demand at country-level means that global trade in beef will need to rise significantly. The United States Department of Agriculture (USDA) has forecast a 0.3% reduction in world production to 59.2M MT in 2023. This is despite beef production being projected to surge by 17% in Australia, as its beef sector continues to rebound from a drought-induced herd liquidation in 2018 and 2019.
Global: The Meat Contractions Continue (Feb 6)
During the first month of the year, the international prices of meat products recorded their seventh consecutive YoY contraction, being slightly lower by 0.1% compared to the December records. However, the Food and Agriculture Organization of the United Nations (FAO) indicated that the values of these foods continued to be 1.3% higher than those of January 2022, even though decreases were noted in pork, beef, and beef and chicken. The international organization explained that worldwide, especially in Oceania, there was a greater supply of bovines ready for meat processing, so there was more than enough volume to serve the markets.
Global: World Beef Meat Production (Feb 6)
Global beef production in 2023 may be lower by 0.3% than in 2022 and amount to 59.2M MT, which will probably be determined by its decline mainly in the US by 6.5% to 12.1M MT, Argentina by 3.5% to 3M MT and the EU by 1.3% to 6.7M MT. Lower production of live cattle in the above-mentioned countries will not be offset by a 2% increase in Brazil to 10.6M MT.
US: USDA’s January 1 Cattle Inventory Report (Feb 6)
All cattle and calves in the United States as of Jan. 1, 2023, totaled 89.3M head, 3% below the 92.1M head on Jan. 1, 2022, USDA NASS reported on Jan. 31. All cows and heifers that have calved, at 38.3M head, were 3% below the 39.4M head on Jan. 1, 2022. Beef cows, at 28.9M head, were down 4% from a year ago. Milk cows, at 9.40M head, were up slightly from the previous year.
US: Beef Production Is Expected to Be 12.02M MT (Feb 8)
Beef production is expected to be 12.02M MT (26.495B pounds), 22.69K MT (50M pounds) more than in January on a higher first quarter slaughter guess against lower carcass weights, with an average steer price of USD 159/hundredweight, up USD 0.50, and higher imports with steady exports and consumption.
US: Annual Records Set In Beef Exports (Feb 9)
The beef totals for 2022 set annual records according to the data compiled by the US Meat Export Federation (USMEF) from the US Department of Agriculture. Total beef exports for the month of December came in at 112.71K MT, with export volume down 7% from a year ago. Value also fell 21% to USD 782.6M. USMEF said the December decline was due in part to a sharp drop in exports to China/Hong Kong, where demand had been constrained by persistent zero-COVID policies. China lifted most COVID restrictions in early December and resumed some international travel in early January. Along with the recent easing of COVID-related cold chain regulations and inspections, these changes offer a more optimistic demand outlook for 2023.
US: 2022 Is a Record Year for US Beef Exports (Feb 9)
Despite slowing toward the end of the year, beef exports reached 1.47M MT, up 2% from the previous high in 2021. Export value climbed to a record USD 11.68B, up 10% from 2021 and nearly 40% above the previous five-year average. The United States exported a record share of its record-large beef production in 2022, and at higher prices. Export value to South Korea was USD 2.7B, up 13% and an all-time record for any single destination, while exports to China/Hong Kong jumped 22% to USD 2.55B. Other markets in which beef exports achieved annual records included Taiwan, the Philippines, Singapore, Colombia, Guatemala and the Dominican Republic.
Australia: Wants Return to Unfettered Trade With China (Feb 6)
Australia called on China on Feb 6 to resume "unhindered trade" as ministers from the two countries met to mend their strained relationship. Beijing has imposed steep tariffs on key Australian exports, such as barley, beef and wine in 2020 at the height of a bitter dispute with the former Conservative government. Australia's previous government angered China by repeatedly questioning its record on human rights and pushing for an independent inquiry into the origins of the COVID-19 outbreak.
Netherlands: Bovine Spongiform Encephalopathy Discovered in the Netherlands (Feb 7)
An outbreak of bovine spongiform encephalopathy (BSE) was detected in the Netherlands. Previously, the country was free from this disease, according to a review of the Information and Analytical Center of Rosselkhoznadzor, citing data from the World Organization for Animal Health (OIE). It is specified that an eight-year-old cow fell. The animal was kept on a farm in the south of the country in the village of Zuid-Beijerland. Moreover, the animal had no clinical signs of the disease associated with BSE.
France: Beef Production in France Is Falling (Feb 6)
According to a recently published annual forecast, French beef production is expected to fall by 21K MT, down 1.6% to about 1.34M MT of slaughter weight compared to the previous year. This would be the third consecutive year of falling production. According to preliminary data, last year the decline in beef production was particularly significant and amounted to 4.7% compared to 2021. Approximately 779K MT of meat from cows and heifers are expected for the current year, 1.7% less than in 2022. The decrease in the production of male cattle is expected to amount to 4K MT, less 1.0%, which corresponds to the production of 402K MT. In addition, the production of veal is to amount to 156K MT, 4K MT (2.5%) less than in 2022.
France: Is the French Beef Production Model in Danger? (Feb 10)
Beef cattle- Trade negotiations between distributors and manufacturers are in the home stretch with an essential revaluation of agricultural products to cope with the soaring prices of 2022. The survival and destiny of many SMEs are linked to the agreements which will be passed. The context is quite complex with an increasing drop in numbers and increased competition from imported meats in the face of consumption that is holding up quite well. Despite general inflation having affected household purchasing power, French beef consumption in 2022 did more than resist. This deceptive resistance, on the other hand, hides major disparities, as it is largely linked to the lifting of COVID restrictions for RHD in 2022. Domestic consumption of VBF fell (5.4%) and the volumes of fresh ground beef sold in supermarkets fell by 8%, while at the same time the share of imports (for out-of-home catering) rose sharply to approach 30% at the start of the year.
Brazil: Overtaking Russia as the Second Best Destination of Paraguayan Meat (Feb 6)
In the first month of 2023, the increase in Paraguayan beef exports to Brazil (45% in volume and 85% in income) allowed this destination to be located in second place in the ranking of the main markets, displacing Russia up to the fourth position, according to the report of the National Service of Quality and Animal Health (Senacsa). As of January 31, Brazil became the second best destination for national beef, ousting Russia from the second position and only behind Chile. In the first month of the year, Paraguay exported 2.40K MT to the neighboring country for USD 13.2M, which represented an increase of 85% in value and 45.2% in quantity, compared to the 1.66K MT shipped in the same period of 2022 for USD 7.1M. In January Brazil also registered a 27% increase in the export price, as it rose USD 1.77K/MT. In the 31 days of the first month of 2023, it paid USD 5.49K/MT, while during the same period last year the figure had reached USD 4.32/MT. In 2022, Brazil's participation in the ranking of Paraguayan meat destinations reached 14% of the total value generated, which allowed it to remain in third place.
Brazil: Remaining the World’s Largest Beef Exporter (Feb 8)
Considered the largest exporter of beef on the planet, according to data from the Brazilian Association of Meat Exporters (Abiec), Brazil closed the year 2022 on a high in this market. According to updated data from Abiec, Brazilian beef exports rose 40.8% between January and December 2022 compared to the same period in 2021. According to the association, the accumulated volume shipped for the year reached 2.3M MT, 22.6% higher than the volume registered in 2021, 1.8M MT. The projection is that exports will exceed the mark of 3M MT between 2025 and 2030. According to data from the Association, in the first half of 2022 alone, Brazil sold beef to 132 other nations. The data shows that Brazilian meat has been occupying a prominent space in international trade.
Brazil: Revenue From Beef Exports Grew 7% In January (Feb 10)
Revenue from Brazilian beef exports (in natura and processed) grew 7% in January compared to the same period in 2022, to USD 798.2M, according to the Brazilian Association of Frigorificos (Abrafrigo) based on data from the Secretariat of Foreign Trade (Secex). The volume shipped was 17% higher, totaling 183.8K MT. In total, 55 countries increased their imports, while 64 reduced. Abrafrigo warns of a drop of 8.6% in average prices per ton exported, to USD 4,630. Main destination of the protein, China absorbed 57% of the beef exported by Brazil, a higher share than in January last year (41.3%). It was USD 485.3M, representing 100.2K MT. The US was the second destination for Brazilian meat in January, even with a drop in purchases. The Americans imported 15.3K MT (11% less), down by USD 79.7M (-18%).
Paraguay: Lower Paraguayan Beef Shipments to Taiwan in January (Feb 7)
At the end of January 2023, Paraguay exported 627 fewer tons of beef to Taiwan, which meant a 22% drop. According to Senacsa data, 2.26K MT were shipped, while in the first month of 2022 shipments reached 2.88K MT. At the income level, there was a 34% decrease, since exports to this market generated USD 10.6M, while at the end of the same period of 2022 USD 16M entered. This downward figure is also supported by the lower export price paid by the Taiwanese market (-16%), which reached USD 4,679/MT. While in January 2022 the registered value was USD 5,560/MT, that is, USD 881 less. In January 2023, Paraguay accessed 32 markets with beef. At the beginning of this year, the 10 most important markets for the national red protein were Chile, Brazil, Taiwan, Russia, Israel, Angola, Georgia, Ghana, Maritime Supply and Uruguay.
Despite the upward correction in recent weeks, Argentina continues to have one of the cheapest beef in the entire region, according to a report prepared by IERAL-Fundación Medriterránea in collaboration with the Sociedad Rural del Noreste Santiagueño. The survey to be able to compare meat prices in each country was carried out in online stores during W3 of January and the first week of February, which is when the strong price update was presented in the Argentine market. The report, coordinated by Juan Manuel Garzón, revealed that in the Argentine market, the average retail price of a basket of eight medium/high quality cuts, which was USD 9.23/kg (1.78K pesos) in W3, rose to USD 11.76 (2,267 pesos) in February. In comparison, the same cuts, measured in Argentine pesos, had a price of USD 10.42/kg ($ 2009) in Brazil, USD 13.52/kg ($ 2,606) in Uruguay and USD 15.00/kg ($2893) in Chile, maintaining similar values in the period considered.
New Zealand: Beef Export Values Increased 20% In 2022 (Feb 10)
The volume of beef exports fell 5% to 482.88K MT, but values increased 20% to USD 4.9B. The average FOB value of beef exports in 2022 was USD 10.07/kg, up from USD 8.02/kg in 2021. China was the largest market for beef during the year, taking 4% more to 219.34K MT and the value increasing 34% to USD 2.1B. Exports to the US fell 22% by volume to 126.18K MT and 5% by value to USD 1.3B due to high domestic production caused by drought. Sales of fifth-quarter products exports were worth USD 2.2B, up 13%, with the greatest demand for casings and tripe, up 29% to USD 440M. Sales of edible offal increased 3% to USD 357M and hides and skins rose 23% to USD 305M.
New Zealand: Meat Processing Volumes Under Pressure Due to Rainfalls During W6 (Feb 11)
During W6, above-average rainfalls throughout New Zealand, mainly in North Island caused an abundance of grass cover in mid to late summer. With decreasing domestic and export prices, farmers tend to keep their stock grazing for longer to gain more weight and maximize farmgate returns. This phenomenon put severe pressure on slaughter and processing numbers, which caused a few of the country's largest meat workers to be only at 50% capacity. Despite this, global meat prices continue to ease, which has a major effect on the current profit margins of processors and exporters.
Russia: EEC Opens Tariff-Free Beef Import Quota in 2023, Mostly for Russia (Jan 6)
The Council of the Eurasian Economic Commission (EEC) opened, on Feb 3, a quota for the import of up to 125K MT of beef from trading partners to five countries in the bloc without tariffs throughout 2023. Most of the quota, 100K MT, is for Russia. The decision also foresees up to 10K MT for Armenia, up to 7.5K MT for Belarus, up to 5K MT for Kazakhstan, and up to 2.5K MT for Kyrgyzstan. The Russian agricultural attaché in Brazil, Andrey Yurkov, told Valor that qualified Brazilian slaughterhouses can benefit from the exemption for imports. In 2022, the tariff-free Russian import quota was doubled to 200K MT. Last year, Brazil exported 49.8K MT of beef to Russia, with revenues of USD 197.5M, according to data from the Ministry of Agriculture's Agrostat. Of the other countries on the list, Brazil does business with Kazakhstan, where it sold only 42MT in 2022.
Russia: The Production of Premixes for Cattle in Russia Increased by 17.7% Over the Year (Feb 8)
In December 2022 in Russia, 18.2K MT of premixes for cattle were produced, 15.1% more than in the previous month, and 6.0% more than in December 2021. In 2022, compared to 2021, the production of premixes for cattle in Russia increased by 17.7%. For the period from January 2020 the minimum volume of production of premixes for cattle in Russia was recorded in January 2021, 9.0K MT. The maximum production volume was recorded in December 2022 with 18.2K MT.
Chile: Red Meat Production Falls in the Last Quarter of 2022 (Feb 6)
According to the figures revealed by the National Institute of Statistics (INE), through the Ferias y Mataderos bulletin, the production of meat on bovine cattle rods registered a total of 45.1K MT during the October-December 2022 quarter, implying a decrease of 6.2% compared to the same period of the previous year. Regarding the slaughter and slaughter process for human consumption, which consisted of 169.16K head of cattle, it presented a YoY drop of 7.5% in the aforementioned period.
China: Speeding up Imports of Australian Beef (Feb 10)
China's ports have been clearing shipments of Australian beef within a week or two since the start of 2023, much faster than the months recorded in the last two years, industry participants said. The latest sign of a “thaw” in relations between the two countries comes after a visit to China by Foreign Minister Penny Wong, the first such trip by an Australian minister in three years. Last month, China allowed four companies to resume coal imports from Australia after an unofficial ban on the trade from 2020, with the first shipments arriving this week.
Algeria: The Next Market to Be Opened for Colombian Meat (Feb 7)
Algeria is in need of Colombian meat for the Ramadan season and that would speed up the export process, said Augusto Beltrán Segrera, technical secretary of the Stabilization Fund for the Promotion of Meat, Milk and Derivatives Exports (FEP). The idea is that this country could buy up to 5K MT of meat a year, which would make it one of the five largest markets in Colombia. Ramadan is the Muslim holiday in which they cannot eat anything while the sun is shining, so they get up early to be able to eat and then fast for the rest of the day until the sun goes down. This year the celebration begins on March 22 and runs through April 20. The government usually gives people a lot of meat during this time and that is why meat consumption in that season grows significantly compared to the other months. The duration of Ramadan oscillates between 29 and 30 days because the Islamic calendar is based on the lunar cycle, the holy month rotates approximately ten days each year and therefore the date of celebration varies.
