W7: Weekly Beef Update
Live Beef
US: Live Cattle Ease on Profit-Taking (Feb 15)
US live cattle futures closed lower on Feb 14 on profit-taking after rising to the highest levels in nearly eight years, with worries about the health of the US economy adding to bearish sentiment, Reuters reported, citing analysts. Benchmark April live cattle futures on the Chicago Mercantile Exchange (CME) settled down 0.425 cents at USD 3,630.46/MT (164.675 cents per pound). Front-month February finished down 0.125 cents at USD 3,574.79/MT (162.150 cents per pound), retreating after climbing to USD 3,579.20/MT (162.350 cents per pound), the highest on a continuous chart of the spot futures contract since April 2015. CME March feeder cattle futures ended down 0.550 cents at USD 4,114.92/MT (186.650 cents per pound).
US: Midday Cash Livestock Markets (Feb 16)
Direct cash cattle trade was quiet. A few bids surfaced at USD 160 live in the South and USD 256 dressed in the North. Those were well below the current asking prices of USD 163-plus live in the South and USD 260 dressed in the North. It looks like buyers and sellers could be headed for a standoff delaying any significant business until sometime on Feb 17. There were a handful of deals reported in the North on Feb 15 at USD 254, fully steady with last week’s business. Boxed beef was sharply higher at midday on strong demand for light offerings. The choice was USD 3.86 higher at USD 279.53 and the Select was USD 2.10 higher at USD 263.29. The Choice/Select spread was USD 16.24.
US: USDA Report Shows a Reduction in the US Cattle Herd (Feb 16)
The US Department of Agriculture (USDA) and National Agricultural Statistics Service (NASS) released its semi-annual report on livestock on Jan. 31. According to the report, the total number of cattle and calves as of January 1, 2023, in the US was 89.3M head, 2.8M less than the previous year. This marks the fourth year of beef and dairy herd contraction in the ninth year of the current livestock cycle, cyclic expansion and contraction of the herd over time. The cycle is influenced by the combined effects of cattle prices and input costs, which drive the profitability of calf production, the gestation period of cows, the time required to raise calves to ideal weight, and weather conditions.
US: Cattle Futures End Mostly Lower (Feb 17)
Benchmark live cattle futures on the Chicago Mercantile Exchange (CME) ended lower on Feb 16 for a third straight session as traders awaited a pickup in the cash cattle markets, but the thinly traded nearby contract hit its highest in almost eight years, reported Reuters. CME's spot February live cattle futures settled up 0.225 cents at USD 3,588.57/MT (162.775 cents per pound) after reaching USD 3,589.67/MT (162.825 cents), the highest on a continuous chart of the front contract since April 2015. But most-active April cattle finished down 0.525 cents at USD 3,617.23/MT (164.075 cents per pound).
Australia: Weekly Cattle Market Wrap (Feb 14)
With the uptick in supply, prices have eased since the end of last year but held relatively steady in 2023, according to Meat and Livestock Australia. The new Processor Cow Indicator (previously the Medium Cow) shows that, due to the current pressure of higher prices on the processors, buyers met with solid demand in W6. This caused a stabilization to occur in the market. Due to the price for processor cattle easing and increased supply coming on the market, slaughter strengthened significantly last week, reaching just under 109K head for the first time since 2020.
Australia: Beef Farming Soars in International Markets (Feb 15)
According to forecasts, in 2023, the number of Australian cattle will exceed 28M. A statistical study highlights that in the country during the next two years, the production of cows for meat and milk will continue to increase despite the bad omens about the weather effects. Ripley Atkinson, an analyst at the Australian agency Meat and Livestock of Australia, points out that market projections for 2023 will mean a substantial increase to 28.8M head of beef.
Australia: Live Cattle Trade In Dire Straits as Wellard Earnings Plunge (Feb 17)
Paul Holmes, a Court-backed Wellard Limited said its earnings collapsed by 90% on the back of Australian cattle exports slumping to a 10-year low. Exports to key markets in South-East Asia have been smashed by Australia having some of the most expensive cattle in the world, and outbreaks of foot and mouth disease and lumpy skin disease in Indonesia. Feedlots in Indonesia set up to fatten Australian cattle have closed down and players in both countries have quit the industry. Industry insiders said there was no guarantee the Indonesian feedlots would reopen after a surge in imports of frozen buffalo meat from India.
Australia: Weekly Cattle Market Wrap (Feb 17)
Cattle yarding has started to pick up at key sale yards. Dalby had an increase of 604 head in W7 after drier conditions in the area and Roma had an increase of 3,376 head. The good quality stock was available at the sale yards with buyers continuing to be picky and paying premiums for better-finished offerings. National cattle yarding improved by 7,351 head, especially in Queensland and NSW. Throughput in the feeder steer indicator improved by 36% WoW. This has placed pricing pressures on the indicator which reached 384.83¢/kg live weight (LWT). Cattle slaughter maintained volumes in W7 at 108.84K head with a slight easing in numbers in Queensland supplemented by a lift of 1% in NSW. These numbers are 15% higher than this time last year.
Netherlands: Import of Calves Increased by Approximately 7% In 2022 (Feb 13)
The Dutch import of calves was higher in 2022 than in the corona years 2020 and 2021. Almost 812K calves were imported. That is approximately 7% more than in previous years. Last year, 71% of the imported calves came from Germany and 12% from Ireland. Because Irish calves were only able to go to France in dribs and drabs due to bluetongue rules, more animals went to the Netherlands.
Brazil: Stable Prices of Bovine Arroba in São Paulo (Feb 14)
According to the First Results of the Quarterly Animal Slaughter Survey, by the Brazilian Institute of Geography and Statistics (IBGE), 7.44M cattle were slaughtered in the fourth quarter of 2022. That was a drop of 5.2% compared to the third quarter of 2022 and an increase of 6.9% compared to the fourth quarter of 2021. The distribution of bone-in meats was good during the last week. With the return of classes and the payment of wages, wholesale with bones showed positive adjustments, mainly for castrated cattle and heifers. In WoW variation, the price of castrated cattle carcasses rose 2.6%, while for whole cattle, the price fell by 0.7%.
Brazil: Brazilian Farmers Demand Better Public Policies (Feb 14)
The new challenges facing Brazilian beef cattle will require stronger actions from the government, say industry leaders, who complain that the activity has been in the background in recent years and has lost ground in public policies for agriculture and dairy production. The main demands are more credit and technical assistance. “We have more restricted access to resources than agriculture, due to the characteristics of our production cycle”, said Valor the president of the Association of Nelore Breeders of Brazil (ACNB), Nabih Amin El Aouar. The extensive model, in which the increase in production is directly linked to the opening of new areas, is coming to an end. Grain crops are advancing in the corners of the country and will continue to take up space in less productive pastures.
The Minister of Agriculture, Fisheries and Food, Luis Planas, has announced that the Government is working on a decree to finance the purchase of new heads of cattle in the context of sheep pox, which has already recorded 26 outbreaks in Spain, of which 13 have been in Castilla-La Mancha and another 13 in Andalusia, which is equivalent to some 37K head of cattle slaughtered. Planas has explained in Congress that currently, the autonomous communities assume 50% of the compensation to farmers, while the remaining 50% is assumed by the State.
Paraguay: Restricted Supply of Steer Keeps the Price Up (Feb 17)
In the last seven days, a new rise of five cents was registered in the price of the Paraguayan steer, since it reached USD 3.60. This upward trend is due to the restricted supply due to the development of the vaccination campaign against foot-and-mouth disease and bovine brucellosis that is in force in the country. At the end of W7, the regional prices of the ranch increased in general, according to the Valor Carne report. In the case of Paraguay, there was a weekly increase of five cents to reach USD 3.60 kg/carcass, which supports the upward trend in local prices.
The Technical Provincial Animal Health Commission (Coprosa) of Chaco, accepted the proposal of the National Agri-Food Health and Quality Service (Senasa) to start the first 2023 vaccination campaign against foot-and-mouth disease and brucellosis in the Province for 60 days. On this occasion, the inoculation against foot-and-mouth disease covers all categories of cattle and buffaloes. And, simultaneously, calves from 3 to 8 months of age will be vaccinated against brucellosis. The institutions that make up the Chaco Coprosa analyzed and accepted the proposal of the National Directorate of Animal Health of Senasa, expressed by the director of the Chaco-Formosa Regional Center of the national organization, Facundo Galvani, however, they indicated that the request will be raised in case of An extension may be required given the provincial water situation and the existence of critical areas.
UK: Farmers in UK Urged to Secure Clostridial Vaccines Early Due to Shortages (Feb 15)
Animal health experts are advising farmers to secure clostridial vaccine supplies early in the run-up to lambing and calving due to shortages. According to numerous animal health experts, some clostridial vaccines have had supply challenges, and farmers must plan. Although there are stocks of vaccines, Elizabeth Barratt, from Mole Country Store, urges farmers to speak with an animal health advisor about when to vaccinate and how many a farmer needs the vaccine for. There is currently stock available of Covexin 10, which protects sheep and cattle against the 10 main clostridial strains.
According to the results of 2022, the number of cattle in the farms of the Orenburg region increased to 125K heads, the largest increase, more than 10%, was due to state support. This was announced to TASS by the First Vice Governor, First Deputy Chairman of the Government of the Orenburg Region, and Minister of Agriculture, Trade, Food, and Processing Industry of the region Sergey Balykin. "According to operational information, as of January 1, 2023, the number of cattle in the peasant farms of the region amounted to 125K heads. An increase in livestock by 9.5K heads, up 108.2% compared to the level of the previous year on the same date, including cows of 59.1K heads, an increase in livestock by 5.5K heads, up 110.6%. Farms in the region remain the basis for the development of rural areas. Support for the farming movement in the Orenburg region is in great demand" he said.
Ukraine: In 2022, More Than 34K Farm Animals Were Identified in Ukraine’s Kirovohrad Oblast (Feb 16)
In 2022, 11.3K cattle, 22.2K commercial pigs, 302 goats, and 309 sheep were identified in the Kirovohrad Region. This was reported by the State Production and Consumer Service. A total of 46K heads of cattle were registered in farms of all forms of ownership in the Kirovohrad region; pigs totaled 198.7 heads; sheep and goats totaled 14.5K heads.
As part of the government's efforts to confront the "red meat crisis", the port of Casablanca has recently witnessed the arrival of shipments of heads of cows intended for slaughter, coming from Europe. It is expected that the aforementioned shipment will contribute to supplying the Moroccan market with a large amount of red meat, which will contribute to the decline in its prices shortly. It is also expected that new shipments of cows will arrive in Morocco from Latin America, especially from Brazil and Paraguay.
Morocco: The Arrival of 5K Heads of Calves Through the Port of Tangier Med (Feb 16)
The process of importing calves destined for slaughter to supply the national market with red meat continues at a good pace at the border post of the port of Tangier Med. From the beginning of January until Feb 16, nearly 5K heads of calves destined for slaughter have been imported through the border post of the port of Tangier Med, which has a veterinary department that supervises various health control operations on food imports and exports. Hamdani Salah El-Din, head of the veterinary department at the border post of Tangier Med, confirmed that the process of importing calves destined for slaughter is taking place in “good conditions and according to the expected pace and under the health conditions” set by the National Office for Health Safety of Food Products (UNSA).
Zimbabwe: Livestock Populations Decimated by January Disease (Feb 13)
In the last few years, Zimbabwe has lost around 0.5M cattle to the tick-borne disease, theileriosis, better known as January disease, or ‘cattle COVID’. This loss has had a huge impact on people’s livelihoods and their ability to farm. The government has announced a ‘war on January disease’ for 2023. Changing disease and vector ecologies Theileriosis is spread by the brown tick (Rhipicephalus appendiculatus) and results in a swelling of the lymph nodes, running eyes, rough skin and loss of appetite, and later almost certain death, especially with older, weaker animals.
Fresh Beef
Global: Outlook for the World Cattle Meat Market (Feb 15)
Global beef production in 2023 was virtually unchanged from the October forecast of 59.2M MT. Global ham prices fell in 2023, excluding the US Graded meat prices, however, remain relatively high compared to pre-pandemic levels, indicating limited supply and solid demand from key markets. Global beef exports in 2023 were virtually unchanged from the October forecast of 12.2M MT. An increase in Chinese imports due to the lifting of COVID-19 restrictions will strengthen HRI demand. Australia and Brazil are expected to gain market share due to lower exportable supplies in the US, Uruguay, and Argentina. US imports also increased as lower US beef production supported additional imports from Brazil and Australia.
US: Meat Prices in the US Have Slowly and Universally Crept Up (Feb 13)
From Feb 3 to Feb 10, the bovine meat and pork futures markets on the Chicago Mercantile Exchange moved in the same direction. Quotes for fattening and live-weight cattle and pork rose by 0.16% to 1.12%. On February 9, cattle meat futures on the CME exchange traded in different directions and without sharp changes. They consolidated around an almost 8-year high, which was reached a week earlier. In the cash market, futures found support due to limited supply. April futures for cattle meat in live weight fell by 0.075 cents, February futures rose by 0.025 cents, and March futures for fattening cattle increased by 0.375 cents. For the week ending February 2, the United States exported 16.4K MT of beef. Last week, the volume of exports was higher by 8.8K MT and amounted to 25.2K MT.
US: Record Beef Exports in 2022 (Feb 14)
US beef exports set a new record in 2022. According to year-end data published by the USDA and released by the US Exporters Association (USMEF), 2022 beef exports reached 1.47M MT, 2% more than the previous maximum of 2021. While, in value, they marked a record of USD 11.68B, 10% more than in 2021 and almost 40% above the average of the last five years. In December, exports registered a decrease, both in volume (-7%) and in value (-21%), due in part to the sharp drop in exports to China/Hong Kong due to the restrictions generated by the policies from zero COVID-19.
US: Beef Exports Reach New Heights in Key Markets in 2022 (Feb 15)
A solid December performance capped a record-shattering year for beef exports to Korea, which climbed 4% YoY to 291.75K MT. 2022 export value was USD 2.7B, up 13% and setting a record for any single destination. Throughout the pandemic, beef export growth to Korea has been driven by soaring retail demand, in both traditional venues and e-commerce. Beef exports to China/Hong Kong were also record-large in 2022, with volume totaling 278.29K MT, up 16% YoY valued at USD 2.55B, up 22%. But December was a difficult month, as exports fell more than 30% from a year ago in both volume (14.86K MT, down 31%) and value (USD 132M, down 33%). While beef shipments to Taiwan slowed in the fourth quarter, exports still set new annual records for both volume and value. Exports totaled 64.82K MT, up 3% from a year ago and 2% above the previous high reached in 2020. Export value climbed to USD 746.9M, breaking the previous (2021) record by 12%.
US: Need to Produce More Beef (Feb 15)
Beef production in the United States in 2023 is forecasted at 12.02M MT (26.5B pounds), up from the previous forecast of 11.79M MT (26B pounds), the US Department of Agriculture (USDA) said in a monthly report. Cattle slaughter rates through early February were faster than expected, offsetting a decline in gains for confined cattle and cows and bulls due to winter weather in parts of the country, the agency said in its monthly outlook report.
With the easing of COVID-19 restrictions in China, Australian beef shipments have become easier in the last month and the volume shipped has also increased. According to information from the Beef Central website, the Chinese are actively buying Australian beef again. During the pandemic, China began testing to see if it had been contaminated beef shipped from other countries. China even suspended shipments from eight slaughterhouses of beef and lamb from Australia between May 2020 and September 2021. However, the COVID tests carried out for imports of chilled and frozen foods were suspended on January 8, which has facilitated port procedures.
Poland: Meat Market (Feb 14)
In the fourth week of January 2023, slaughter cattle were purchased at USD 2.38/kg (PLN 10.66) compared to USD 2.38/kg (PLN 10.65) a week earlier. Live beef was cheaper by 3% than a month ago but more expensive by 13% than in the comparable week of 2022. The price of quarters was 9% higher than a year ago.
Brazil: 2023 Begins With a Drop in the Average Price of Beef Exported (Feb 13)
Throughout January, Brazil exported 183.82K MT of beef for a value of USD 851.2M. This has meant 7% more in value and 17% in quantity than in 2022, according to the data provided by Abrafrigo, which has been compiled from the Secretary of Foreign Trade, of the Ministry of Economy of Brazil. The increase in the amount exported has not been matched by the same rise in economic income, which would indicate a reduction in the average price of the ton of Brazilian beef exported compared to the data from the beginning of 2022. In figures, they passed from USD 5.07K/MT in January 2022 to USD 4.63K/MT in January 2023, a decrease of 8.6%.
Paraguay: Beef Exports of USD 106.1M in January (Feb 14)
Although in the first month of 2023, there was a higher volume of beef exports, revenues were lower than last year due to the depreciation suffered by the product in the international market. According to the report of the National Service for Quality and Animal Health (SENACSA), in January shipments of the star category of livestock generated USD 106.1M, a figure corresponding to a reduction of 3.5% from what was received in the same month in 2022, which was USD 110M. The average price obtained in the first month of this year was USD 4.62K/MT, which shows a drop of 11.5% compared to the USD 5.22K/MT averaged in January 2022.
Paraguay: We Will Continue Exporting Beef to Taiwan, and We Plan to Grow Between 15% And 20% (Feb 14)
The Paraguayan ambassador in Taiwan, Carlos Fleitas, affirmed that the commercial expectations with the Asian country are for an increase in beef exports. "We project to grow between 15 and 20% of the export of bovine meat," he said in an interview with Value Added on radio Pa'i Puku 720 AM. Fleitas confirmed that from Paraguay "we will continue working with the export of beef and pork products to Taiwan and have substantial growth." He commented that in 2016 some 6K MT of beef were sold to Taiwan, while in 2022 shipments of more than 37K MT were closed.
Argentina: The General Directorate of Customs in Argentina Detected Under-Invoicing of Meat Exports (Feb 13)
The General Directorate of Customs (DGA) of Argentina detected under-invoicing maneuvers in 523 shipping permits for beef exports for USD 11.91M, according to what the state news agency, Télam, published. According to the agency, the events were recorded in the 2021/22 period, with some 22 exporting refrigerators involved. Most of the exports had China, Chile, and Brazil as their final destination, and the operations were re-invoiced through traders without economic substance in Cyprus, Uruguay, Switzerland, and the United States, details of the Customs survey.
Argentina: With China as the Main Destination, Meat Shipments in 2022 Grew in Volume and Value (Feb 13)
Argentine exports of bovine meat accumulated throughout the last year, from January to December 2022, were located in volumes close to 796.32K MT of beef with bovine meat plus 93.7K MT of bovine bones; for a value of more than USD 3.424M. Shipments grew slightly more than 54K MT (9.5%) compared to 2021. In terms of the value of foreign currency received, the main market during the period was China, which represented 65.6% of the total export value of chilled, frozen, and processed beef in the period, followed by Germany (7.4%), and Israel (6.8%). The average FOB price of meat sent to China during 2022 was USD 4.63K/MT, 16.7% higher than the average price for 2021, although it should be noted that in December the price paid by the Asian giant suffered a drop and ended the year at USD 3.16K/MT.
Argentina: Government Implements Price Program for Meat in the Face of High Inflation (Feb 14)
The Minister of Economy of Argentina, Sergio Massa, announced Monday the implementation of a program that will guarantee a greater supply of beef together with the reduction of prices in the context of high inflation. The head of the economic portfolio reported that the "Program Comprehensive for the Promotion of Meat Production and Consumption" covers seven "grill" cuts, of massive consumption in Argentina, with a 30% reduction in prices from next February 17 to March 31." The Executive reached an agreement with supermarkets and export refrigerators in the country to offer some 18K MT of beef over the next month and a half, all of which represents 25% of national monthly consumption.
Uruguay: The Export of Meat to China Was the Lowest in More Than Two Years (Feb 13)
The January numbers in terms of meat exports to China were the lowest since August 2020, that is, about 29 months. According to data from the National Customs Directorate, 4.7K fewer tons of the product were shipped last month, compared to the 14.51K MT in December 2022. In turn, this number was less than half the average of 30K MT recorded for several months of 2021. These shipments of meat represented 60% of sales to the Asian giant in the last two months.
New Zealand: Increasing New Zealand’s Sale-Yard Prices of Meat for W6 (Feb 17)
The average local slaughter and export price trends for W6 in New Zealand for W6 vs. W5 stood as follows:
Steer NI P2, 300kg - USD 3.60/kg (NZD 5.80/kg) vs. USD 3.58/kg (NZD 5.76/kg) + 0.7% marginal increase
Export Bull, USA - USD 5.29/kg (NZD 8.51/kg) vs. USD 5.04/kg (NZD 8.12/kg) + 4.8% increase
UK: 2022 Beef Yearly Trade Review, Exports up and Imports Down (Feb 17)
Beef imports for the last month of 2022 reached 21.5K MT, marking a nearly 10% decrease in volume from December 2021. The majority of the decline was driven by lower shipments from Ireland, continuing the trend seen from the months previous. For the full year of 2022, fresh and frozen beef imports totaled 233.3K MT, down 3.6% from the 2021 total. Beef exports for December totaled 10.3K MT, down slightly (177 MT) from December 2021. Total exports for 2022 stood at 123.7K MT, up 20% (20.8K MT) on the total volume from 2021. Increases in exports for 2022 mainly came from the first two quarters, with the last two quarters staying closer to volumes seen in 2021.
Kazakhstan: Ability to Import up to 5K MT of Beef Without Duties (Feb 14)
The Council of the Eurasian Economic Commission (EEC) has agreed on the duty-free import of beef for the production of meat products to the EAEU countries, the EEC press service reports. According to the information, Kazakhstan will be able to import duty-free up to 5K MT of this meat duty-free. Also on the EEC website, it is specified that in 2023 Armenia will be able to import duty-free up to 10K MT, Belarus up to 7.5K MT, Kyrgyzstan up to 2.5K MT, and Russia up to 100K MT.
Russia: Ceasing to Be an Export Alternative for Paraguay (Feb 15)
Unlike previous years, Russia ranked in January as the fourth largest market for Paraguayan beef, a fact that was expected to come and did not surprise the national meat complex as a result of a series of events, mainly political, that were generating major changes in the country led by Vladimir Putin. The Russian market had been the second largest destination for Paraguayan beef, only behind Chile. However, the latest official data from the National Animal Health and Quality Service (Senacsa) show that in January, it was Brazil finished in second position with a 15% share; followed by Taiwan with 10% and Russia with 7% of total exports for the month. For some years Russia has tried to establish a self-sufficiency policy for beef, which implied gradually lowering the levels of purchases abroad.
South Korea: What Are the Measures to Stabilize the Supply and Demand of South Korean Beef? (Feb 14)
The Ministry of Agriculture, Food and Rural Affairs alleviates the difficulties of farmers due to the recent drop in wholesale prices of Korean beef and considers that the price drop problem will last for a long time until next year. The Ministry of Agriculture, Food and Rural Affairs continue to take relevant measures together with producer groups such as the National Agricultural Cooperative Federation and the National Korean Beef Association and experts. After discussion, it was announced that measures to stabilize the supply and demand of Korean beef were prepared. To stabilize the Korean beef industry this year through a soft landing of Korean beef wholesale prices, the company plans to minimize losses for small and medium-sized farmers by stabilizing Korean beef prices by creating additional demand for 24K MT of additional supply expected in 2023 compared to last year.
South Korea: Increased Consumption of Hanwoo Beef for Korean New Year Holidays (Feb 14)
During this year's Lunar New Year holiday, compared to last year, the proportion of Korean beef consumption for soup and bulgogi increased, while the proportion of Korean beef consumption for grilling decreased. According to a survey, the parts of Hanwoo that consumers bought the most this Lunar New Year's Day were brisket 30.7%, sold 17.9%, sirloin 16.6%, and rump 13.1%. In particular, consumption of rump meat used for soup and bulgogi showed the highest increase of 4.4%p compared to last year's Lunar New Year holiday period.
South Korea: Up to 50% Discount on Korean Beef at Hanaro Mart Nationwide (Feb 17)
The National Agricultural Cooperative Federation continues until the 19th at Hanaro Marts across the country with ‘Tasty Korean beef at half price! We are holding a special discount event’. For this event, the Ministry of Agriculture, Food and Rural Affairs, and the Nonghyup jointly prepared a countermeasure to expand Korean beef consumption. With the catchphrase of 'admiring Korean beef', it will be held as a simultaneous nationwide event. During the event, 1+, 1, and 2-grade Korean beef bulgogi and soup are 50% off and sirloin is 30% off. In the case of first-grade bulgogi and soup, the price of bulgogi and soup is USD 1.74 (KRW 2,260), which is half of the recent consumer price of USD 3.48/100g (KRW 4,521), and sirloin is sold at USD 5.08 (KRW 6,590), a 30% discount from the consumer price of USD 7.26 (KRW 9,416). First-class Korean beef bulgogi and soup prices are cheaper than the recent consumer price of pork belly at USD 1.89 (KRW 2,456), and this event is expected to greatly contribute to price stability and the expansion of Korean beef consumption.
China: Significant Drop in Prices, China Is Prepared to Pay For Beef (Feb 13)
China purchased much more beef in January than in the same month of 2022 but paid much less. In effect during most of the second half of 2022, China was prepared to pay up to USD 6.2K/MT of prime beef protein, but since last month it dropped drastically to USD 4.8K/MT, forcing a renegotiation of volumes and an impact on the overall industry. As a result, overall export sales grew by just 7%, against volumes 17% above, at USD 851.2M and 183.8K MT of fresh and processed products. Chinese importers accounted for 57% (100.1K/MT) of total revenues last month. In the previous January, the representativeness was 41.3% (53.1K/MT).
China: Low Demand for Uruguayan Meat During W7 in the Chinese Market (Feb 18)
In W7, the Chinese market for Uruguayan meat was inactive. Consumption from China is forecasted to increase before the Sial fair in May, increasing the price of meats, including beef. The sales price reported from Uruguay for beef kidneys stood at USD 1.2K/MT, hearts at USD 1.2K/MT, tendons at USD 5.5K/MT, tails at USD 4K/MT, and aorta at USD 7K/MT, all CFR.
Ecuador: There Are No Quality Cattle for Sale, Indicate Producers (Feb 16)
The increase in the price of bovine meat not only affects Argentina and Brazil but can also be felt in Ecuador. The delay of winter in the Ecuadorian territory has not only had an impact on the agricultural production of the country but also the livestock sector, the same one that currently faces a drop in the quality of cattle due to the shortage of pasture caused by the lack of rains, Washington Moyano, Manager of the Santo Domingo Cattlemen's Association (ASOGAN) said. Moyano highlighted that within the sector there is no lack of cattle, however, if there is a lack of quality in the animals since Ecuador is currently coming out of a long summer, "the delay of winter affects the quality of the bovines" he assured.
Indonesia: Ramadan Nutrition Is Safe, and Cattle Trade Imports Are Abundant (Feb 16)
Imports of beef started to increase rapidly in January 2023. Beef imports increased by thousands of percent from India earlier this year. Abundant beef imports will likely be carried out to meet the needs of Ramadan in 2023. Data on imports of certain food commodities from the Central Statistics Agency (BPS) shows that in January 2023, imports of 16.18M kg of Indonesian beef were imported. This figure increased by 103.3% when compared to the volume of imported beef in January 2022 of 7.96M kg. Meanwhile, compared to December 2022, which was 11.48M kg, an increase of 40.95%. In January 2023, the most imports of ox meat came from India, amounting to 13.49M kg. Up to 4,281.82% compared to the record in January 2022 volume of 308K kg.
