Argentina's Beef Export Volume Rises 11% in 2022 Despite Domestic Restrictions, Driven by Chinese Demand

According to the latest data from Argentina's National Institute of Statistics and Censi (INDEC), Argentina's beef exports in 2022 totaled 631.99 thousand mt with a total worth (FOB) of USD 3.45 billion. In year-over-year (YoY) terms, these figures represent increases of 10.95% in volume and 24% in value. The higher growth in export value corresponds to a higher average export price of $5.47/kg, up 12% YoY.

The growth in beef exports is notable considering that Argentina maintains restrictions on the export of several beef cuts to boost domestic consumption, which has fallen over the years due to economic pressures.

China continued to top the export destinations for Argentinian beef, and further grew its market share. This is notable since growth came despite pandemic-induced restrictions for demand. Exports to China now represent 78% of the total volume of beef exported, at 491 thousand mt, up 16% YoY, and 66% of the total value exported, at USD 2.27 billion, up 35% YoY. Exports to Germany corresponded to 4% in volume and 7% in value, while exports to Israel represented 5% in volume and 7% in value. Exports to both of these destinations experienced YoY growth. Meanwhile, exports to Chile declined 31% YoY in volume and 21% YoY in value, with the South American country decreasing its share in Argentinean exports to 4% in volume, from a previous 6%, and to 5% in value, from a previous 8%. Chilean beef demand declined YoY in 2022 as a result of inflationary pressures on consumers. Other major destinations for Argentinian beef include the Netherlands, the US, Brazil, and Italy.

It’s worth noting that exports to Germany and Netherlands include higher-quality beef cuts, which are thus reflected in the average export price to these destinations, averaging $10.33/kg in 2022. Argentina continues to explore new market opportunities, and one of them is seeking to export more meat to Germany and to start exporting beef to Mexico. Argentina is set to start exporting beef to Mexico this January 2023, according to Argentina’s Ministry of Economy. The South American country will seek to export high-quality beef to Mexico, similar to its intended exports to Europe.

Source: Tridge and INDEC

Export prices in December 2022 fell to a fresh multi-year low. While the average export price in 2022 recorded a 12% annual increase, this is mainly the result of strong prices in H1 of the year, as prices began a clear downward trend just before H2 2022 began. After peaking in April at $6.30/kg, prices eased to a multi-year low of $3.90/kg in December 2022. Compared to the same month in 2021, this represents a decline of 30% YoY. Local reports indicate that, while export prices are indeed now considerably lower YoY, domestic prices for consumers are still highly inflated, which continues to pressure down domestic consumption of beef. However, it’s worth noting that while international beef prices remained subdued through H2 2022, wholesale prices in the US and Europe rebounded in December 2022 and continued increasing this January, which could result in higher export prices from Argentina and other producers as 2023 advances.

Source: Tridge and INDEC