Significant drop in prices, China is prepared to pay for beef

Published Feb 13, 2023

Tridge summary

In January, China's beef purchases increased but spending decreased significantly, falling from up to US$ 6,200 per ton to US$ 4,800 per ton, impacting the industry and leading to renegotiations. Despite this, overall export sales grew by 7% to US$ 851.2 million, handling 183.800 tons of fresh and processed product. Chinese importers accounted for 57% of these revenues. Meanwhile, Uruguayan beef exports in January totaled US$ 131 million, a 39% decrease from the previous year, largely due to a 55% drop in purchases from China. However, China still remains a crucial market, receiving 51% of Uruguay's beef exports. Meat derivative exports experienced a 32% decrease, amounting to US$ 29 million in January 2023.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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 US$ 6,200a ton of prime beef protein, but since last month it dropped drastically to US$ 4,800 the ton, forcing a renegotiation of volumes and having an impact on the overall industry. As a result, overall export sales grew by just 7%, against volumes 17% above, at US$ 851.2 million and 183.800 tons of fresh and processed product. Chinese importers accounted for 57% (100.1 thousand/t) of total revenues last month. In the previous January, the representativeness was 41.3% (53.1 thousand/t). Translated by ton price in the average of all markets served by Brazilian abattoirs, according to Secex data worked by Abrifrigo, in the first month of the previous year the amount paid was US$ 5,069, falling almost 9% now, to US$ 4,630 . In related news beef exports from Uruguay during January totaled US$ 131 million, 39% ...

Source: MercoPress