W16 Beef Update: Brazilian Beef Exports Soared 27% YoY in Mar-24, Argentina's Beef Consumption Hit Record Low

Published 2024년 4월 26일

In W16 in the beef landscape, Brazilian beef exports surged in Mar-24, reaching 206.05 thousand mt with revenue at USD 856.9 million, driven by increased volumes despite declining average prices. China remained the top destination, accounting for 41.1% of exports. However, concerns persist over falling international beef prices. Meanwhile, Argentina faces a significant decline in beef consumption amid an economic crisis, with consumption hitting thirty-year lows. In contrast, the US witnessed a decline in beef exports to Korea but a surge in export value. Lastly, Germany secured a breakthrough in trade relations with China, lifting the ban on German beef imports.

Brazilian Beef Exports Surged Despite Price Decline; China Remains Top Market

Brazil's beef exports surged 27% year-on-year (YoY) in Mar-24, totaling 206.05 thousand metric tons (mt), with revenue reaching USD 856.9 million, a 21% YoY increase. Despite a decline in the average price, exports remained robust. In Q1-24, exports amounted to 672.33 thousand mt (+35%), generating USD 2.712 billion in revenue (+20%). China maintained its position as the top destination, accounting for 41.1% of total exports, though down from the previous year's 45.7%. Chinese imports rose to 276.34 thousand mt (+21%), generating USD 1.222 billion in revenue (+9.4%), albeit at lower average prices. The second-largest buyer, the United States (US) experienced a significant drop in average prices paid for beef but nearly doubled its volume of acquisition.

Brazilian Beef Exports Reach Record Levels Despite Persistent Price Decline

At the outset of 2024, falling international beef prices persist as a concern for the Brazilian beef sector. In Mar-24, average prices dropped to USD 4,158/mt from USD 4,356/mt in Mar-23. Similarly, Q1-23 average prices fell from USD 4,520/mt to USD 4,033/mt in Q1-24. This decline follows a trend from the previous year, where average prices for 2023 were already low at USD 4,276/mt compared to USD 5,582/mt in 2022, marking a 23% YoY decrease. Although prices are declining, beef export volumes continue to set records.

In Mar-24, Brazilian beef exports reached 206,053 mt, a 27% YoY increase, generating a revenue of USD 856.9 million, a 21% YoY increase. For the quarter, exports totaled 672,330 mt, up 35% YoY, with revenue rising from USD 2.255 billion to USD 2.712 billion, representing a 20% YoY increase. Compiled by the Brazilian Association of Refrigerators (ABRAFRIGO) using data from the Secretariat of Foreign Trade (SECEX) of the Ministry of Development, Industry, Commerce, and Services (MDIC), these figures underscore the resilience of beef exports despite pricing challenges.

Argentina Faces Record-Low Beef Consumption Amid Economic Crisis

Beef consumption in Argentina, a leading producer and consumer globally, has plunged to almost record lows amid a severe economic crisis. In Q1-24, consumption hit its lowest point in thirty years, with nearly 10 kilograms (kg) less consumed per person annually. Previously, Argentina boasted some of the highest levels of meat consumption globally, at nearly 50 kg per person annually. However, the country is grappling with a harsh economic downturn, exacerbated by the President's budget cuts. Approximately 60% of Argentina's population lives in poverty, with YoY inflation soaring above 280%, contributing to a staggering 278% annual price hike for beef as of Mar-24.

US Beef Exports to Korea Declined in Volume but Surged in Value Amid Rising Food Prices

The United States (US) beef exports to South Korea in Feb-24 saw a 7% YoY decline in volume, reaching 18,074 mt, while the export value surged by 12% YoY to USD 172.3 million, as per the United States Department of Agriculture (USDA) and the United States Meat Export Federation (USMEF) data. Despite challenges posed by rising food prices affecting Korea's food service sector recovery, US beef has seen success in the home and restaurant meal replacement markets, bolstered by Korean government initiatives to manage food price inflation.

Germany Secures Milestone Deal as China Lifts Ban on Beef Imports

Germany has achieved a breakthrough in trade relations with China with the announcement that China will lift its longstanding ban on German beef imports. Following negotiations led by the German Chancellor during his visit to China, the General Administration of Customs of China confirmed that Germany will be permitted to export beef from animals less than 30 months old starting April 16. Additionally, Germany is exploring opportunities to export apples, and discussions are underway regarding potential flexibility in German pork exports to China.