W3: Weekly Beef Update
Live Beef
US: 3-Year Drought Would Push US Livestock Inventory to a Low Not Seen in 72 Years (Jan 16)
After three consecutive droughts caused by La Niña, the United States would have the lowest herd since 1951-52, at about 87.7M cattle. Consequently, after 2022 with record production, the amount of tons of meat obtained in 2023 would fall between 400K and 500K MT. At the annual meeting of the American Farm Board Federation (AFBF), economist Bernt Nelson, assured that the shortage of pasture and feed resulted in a significant liquidation of the herd in the last three years. All eyes are on the US Department of Agriculture (USDA) report due out on January 31. Many analysts expect a 4-6% drop in inventory.
US: Live Cattle Futures Ended Mostly Firm (Jan 16)
Chicago Mercantile Exchange (CME) live cattle futures ended mostly firm on Jan 13, underpinned by tight supplies and as harsh winter weather in recent weeks lowered cattle slaughter weights and limited beef production, Reuters reported, citing traders. Live cattle futures prices remained bound in a recent trading range as cash cattle prices at Plains feedlot markets were mixed in light trade compared with last week's sales.
US: Live Cattle Futures Sag (Jan 18)
Chicago Mercantile Exchange (CME) live cattle futures fell on Jan 17, on spillover weakness from feeder cattle futures and long liquidation as market players responded to a hefty net long position held by commodity funds, Reuters reported. CME February live cattle settled down 0.725 cent at USD 3,461.25/kg (157.0 cents/lb) and April futures fell 0.800 cent to USD 3,529.60/kg (160.100 cents/lb).
US: USDA Seeks Public Comment on Proposal to Strengthen Animal Disease Traceability Regulations (Jan 19)
The United States Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) recently announced a proposed rule to amend animal disease traceability regulations. The agency is soliciting public comment on the proposal until March 22, 2023. The biggest change is that official USDA tags will now be defined as those that are both visually and electronically readable. About 89% of the national herd of approximately 100M cattle and bison will not be impacted by the changes in this proposal.
Volume of cattle being confined in the US in feedlots with more than 1K head was 11.7M animals as of January 1 of the current year, down 3% from the same period in 2022. The entry of new animals into North American feedlots in December also registered a drop of 8% compared to Dec/21. Similarly, sales of fat cattle in December registered a drop of around 6% compared to Dec/2021. In addition to the climatic adversities observed at the end of 2022, which led to cold waves in several producing poles, it is possible that the results recorded in Dec/22 and Jan/23 were already indications of the retention.
US: Factors That Could Slow the Rebuilding of the US Cattle Herd (Jan 20)
A protein analyst said herd expansion in the US cattle industry could be slow because producers are facing headwinds. Lance Zimmerman indicated that the demographics of cattle producers are another challenge. He added that the industry liquidated a record number of cows in 2022. If the economy continues to slow, there could be additional pressure on disposable income from inflation and higher interest rates.
The Eastern States Young Cattle Indicator in Australia increased by USD 0.06/kg CwT in W2 from USD 5.36/kg CwT to USD 5.42/kg CwT on January 20, 2023. This marks the lowest level since August 2020. It's a clear sign that national cattle rebuilding efforts have reached potential, and re-stockers are no longer propping up cattle values as we have seen over the last two years.
Ireland: Government Must Fund Active Suckler, Beef and Sheep Farmers (Jan 16)
The president of the Irish Cattle and Sheep Farmers’ Association (ICSA) Dermot Kelleher has said that government funding is urgently needed to support active suckler, beef and sheep farmers. Kelleher welcomed the recent announcement from the Minister for Agriculture, Food and the Marine, Charlie McConalogue, that a beef reduction scheme is “off the table” as part of the Climate Action Plan.
Ireland: INHFA Warns of Ongoing Threat to Suckler Sector (Jan 17)
Reducing suckler slaughter age, one of the proposals set out in the government’s Climate Action Plan, “will do nothing to reduce emissions”, a farm organization cautioned on January 17. The Irish Natura and Hill Farmers’ Association (INHFA) said it views the targets outlined in the Climate Action Plan as an “immediate threat to suckler farmers with larger carcass breeds”.
Brazil: Beef Production Cost May Remain High in 2023 (Jan 19)
In 2022, national beef cattle production costs presented distinct movements among the typical farms that represent the rearing and fattening system, with an increase of 10.15% for the first case and a decrease of 12.56% for the second, according to surveys carried out by Cepea in partnership with the CNA (Confederation of Agriculture and Livestock of Brazil). The determining factor for this result was the devaluation of the calf, which is the main input of the cattle raiser who works with rearing-fattening. The other inputs used in the production of beef cattle in both systems recorded significant appreciation throughout 2022.
Brazil: Drop in the Quotation of the Fat Cow Arroba in São Paulo (Jan 19)
The good offer of finished cattle and little demand left prices for all categories under pressure. As a result, the quotation for the fat cow dropped USD 0.39/@ (R$2.00) in relation to the previous survey done on Jan 17. In the South, due to the good supply of cattle and slaughter scales closed until the end of the month, prices in all categories dropped. The price of an arroba for fat cattle dropped USD 0.99/@ (R$5.00) and females USD 0.39/@ (R$2.00) in the day-to-day comparison. In the West, in the daily comparison, the price of cattle was stable in relation to the previous close, thus there were no price changes.
Brazil: Efficiency of Brazilian Exporters of Live Cattle Is the Target of Commercial Harassment (Jan 22)
If there is a sector under constant threat in Brazilian agriculture, it is the export of live cattle by sea, although it is a legal activity that generates jobs and income for the country. Every now and then, foreign sales of live cattle return to the debate, through legislative proposals that aim to prevent this type of trade, under the allegation of defending animal welfare. This movement, according to representatives of exporters, has another objective: to exclude Brazil from the world market for live animals. Exporters emphasize that the sector complies with a series of sanitary, animal welfare and tax legal requirements.
Spain: The Ministry of Agriculture Published New Regulations for Bovine Farms (Jan 19)
After the publication of the new regulations that regulate cattle farms, the Ministry of Agriculture wanted to make things easier for farmers and has published a guide on its website in which it explains in detail how the regulation affects them. They explain in the ministry that the initiative is aimed at the practical understanding of the legal text, in relation to the different production models and productive orientations of these sectors. It contains detailed information on how the new regulation affects each type of farm and the specific requirements for each of them, both for existing farms and newly created ones.
Paraguay: More Slaughter Capacity and Less Farm (Jan 19)
The National Animal Health and Quality Service (Senacsa) projects a drop of approximately 220K cattle in the Paraguayan bovine stock, the third consecutive drop in a framework where a new meat-packing industry begins to operate in the market and others, already installed, are inaugurating an increase in slaughter capacity.
The National Service for Quality and Animal Health (Senacsa) informed about the beginning of the first vaccination period against foot-and-mouth disease and bovine brucellosis for the entire national territory with a view to guaranteeing the quality and safety of the cattle herd. The 2023 campaign will begin next on January 23, on the one hand for vaccination against foot-and-mouth disease specifically, for cattle and buffalo cattle in general, according to Resolution No. 1610/22.
Argentina: Almost Half of the Argentine Cattle Stock Is in Dry Areas (Jan 18)
A Rosgan report indicates that some 26M heads are at risk from the climate phenomenon. The damages of the dry in the cattle ranch are evident although they could still be worse if this climactic phase is prolonged. 48% of the national livestock stock is found in areas affected by drought, which represents some 26M heads at risk.
Argentina: Export of Live Cattle to Chile for Genetic Reproduction (Jan 19)
The National Agri-food Health and Quality Service (Senasa) of Argentina certified the export for the first time of four Hereford and Angus bulls destined for Coyhaique, Republic of Chile. The animals, destined for genetic reproduction, come from a cabin located in the town of Trevelin, province of Chubut. According to the entity's website, prior to export, the animals were kept in isolation, complying with a quarantine stage, completing all the diagnostic tests required by the Chilean health authorities, to complete this first shipment of bovine reproducers to the neighboring country.
Colombia: The Forecasts of the Average Price of Fat Cattle (Jan 16)
For the second week of the year, the price of fat cattle remained at the same level as the previous week. Most of the auctions were already beginning to operate and the prospects were turning positive, and if the indicators behaved as experts predicted, we would have some good cattle herds. Comparing the behavior of the price of cattle in the first week of 2022 and its behavior until mid-May, it would have to be said that nominally the price of cattle started 2023 at a good level. In the first week of January 2022, the nominal price of fat cattle was USD.6,848 kilo compared to USD 7,938 observed in 2023, that is, USD 1,090 above, which is equivalent to 15.9%. From that level registered in the first week of January 2022, the price rose until mid-May to USD 8,802, equivalent to an increase of 28.5%.
Colombia: Bovine and Buffalo Slaughter Falls, According to Data Until November 2022 (Jan 17)
The slaughter of bovines continued its downward trend one month before the end of 2022, with a drop of 6.1% compared to 2021 and one of 9.2% compared to 2019. Throughout this year, the benefit with destination for export was the hardest hit, with a decrease of more than 30%. According to the Livestock Slaughter Survey of the National Administrative Department of Statistics (DANE), in the eleventh month of 2022, 261.31K head of cattle were benefited, as well as 3.7K head of buffalo cattle, for a total of 265.051K animals. Adding the data for the entire year except the month of December, a total of 2.82M cattle and 35.62K buffaloes have been sent to slaughter.
South Korea: Even Though the Korean Beef Auction Plummeted, 100K Beef Cattle Were Raised (Jan 20)
Hanwoo auction prices plummeted, but beef consumer prices are still at a high level, and at the end of last year, the number of Korean cattle and beef cattle raised was found to have increased by more than 100K compared to the previous year. According to the "2022 4th Quarter Livestock Trend Survey Results" announced by the National Statistical Office on the 20th, the number of Korean and beef cattle raised was 3.69M as of December, a slight decrease from the previous quarter, but compared to the previous year, it increased by 2.9% (104K heads).
On the 18th, Kim Chun-jin, president of the Korea Agro-Fisheries & Food Trade Corporation (aT), met with officials to promote Korean consumption and promote exports in response to the recent drop in Korean beef prices. At the meeting, President Kim expressed his appreciation for aT's preemptive efforts to provide information, such as certification of the halal level of slaughterhouses to export Korean beef to the halal market such as Malaysia and the United Arab Emirates (UAE), and suggested a plan for sustainable development of the Korean beef industry through mutual cooperation. In addition, the two institutions and organizations agreed to continue cooperation in various fields, such as spreading a low-carbon diet campaign to practice environmental, social, and governance (ESG) values in the livestock sector.
Ukraine: Estimated Data on the Number of Cattle (Jan 19)
As of January 1, 2023, agricultural enterprises and households kept the number of cattle which totaled 2.4M heads. The reduction compared to the same date last year was 10.8%.
Ukraine: Exported 42% More Cattle in 2022 (Jan 20)
The export of live domestic cattle in 2022 increased by 41.9% compared to 2021, to 19.3K MT. In monetary terms, the export of live cattle increased by 17.3% compared to the figure for 2021 and amounted to USD 35.3M. Egypt (63.5%), Lebanon (22.7%) and Jordan (11.6%) bought the most domestic cattle in 2022. The import of live cattle for 2022 fell by 68% compared to the previous year to 795MT. Ukrainian farmers spent USD 3.4M on the purchase of live cattle abroad last year, 70.7% less than in 2021.
Kazakhstan: EAEU Approves New Requirements for Livestock Genetic Material (Jan 19)
The Board of the Eurasian Economic Commission approved new chapters of the Uniform Veterinary Requirements and forms of veterinary certificates for in vitro embryos of cattle and small cattle embryos. This was reported by the press service of the EEC. “The requirements for in vitro bovine embryos and MRS embryos have not yet been defined either at the national level of the Member States or at the commission level, which made it difficult for them to be imported and freely circulated on the territory of the Union,” the report indicated.
Russia: A Livestock Breeding Complex Will Be Created in the Stavropol Territory for USD 72M (Jan 18)
A report indicated that Rosselkhozbank signed agreements on the allocation of credit funds to Agriko Group in the amount of USD 77M (5.3B rubles) for the construction of a complex for the reproduction and fattening of cattle (cattle) in the amount of up to 21K heads, including the construction of irrigation systems to create fodder base of cattle with an area of up to 4K ha. The project "Stavropol beef" is planned on the territory of the agro-industrial park in the Ipatovsky district.
State support for personal subsidiary farms (PSPs) is planned to be extended to beef cattle breeding if there is a successful experience of its application in crop production this year. This was announced by Deputy Minister of Agriculture of the Russian Federation Andrey Razin. It should be noted that this year we have the first attempt to support private household plots in crop production. Let's see how we work on vegetables and in general.
China: Rehabilitation of 3 Slaughterhouses in Brazil While Indonesia Opens 11 More (Jan 18)
China has rehabilitated three meat packing plants in Brazil, one for beef and two for poultry, while Indonesia has rehabilitated 11 beef packing plants in the country, Agriculture Minister Carlos Fávaro said after meeting with President Luiz Inácio Lula da Silva. The JBS unit in Mozarlândia, in Goiás, had suspended beef shipments to China since last year and may resume sales to the country, according to information from the ministry.
Zimbabwe: January Disease Ravages Matabeleland South Province (Jan 16)
Farmers around the Fort Rixon area in Matabeleland South province, who are losing heads of cattle to the January disease, have appealed for urgent government intervention. January disease, officially known as Theileriosis, is a severe sickness transmitted in livestock by ticks. Theileriosis tends to be encountered in January when the rainfall activity is high, hence the name, January disease. Some villagers have reportedly lost up to 50 beasts or more per household, while cattle buyers are reportedly cashing in on the desperate farmers who are disposing of their animals for a song fearing total loss.
Fresh Beef
US: Demand Influences (Jan 17)
In 2023 US consumers can anticipate greater availability of pork, broiler meat and turkey but less beef, which they will have to pay more for than last year. Demand for all proteins will largely depend on consumer concerns about inflation and whether the US economy has moved into a recession. Beef demand at retail and foodservice is robust. Beef currently has an advantage over pork and chicken at retail as average retail prices in the second half of last year trended below year-ago levels, while pork and chicken prices trended higher. Pork prices even hit a record USD 5.05 per lb in October, up 4.8% from a year earlier. Beef prices are currently at their most competitive in relation to the competing meats since 2017. But that is likely to change this year
US: Beef Imports Hit a Record High, Accounting For 54% Last Year (Jan 17)
US beef recorded the highest import volume and market share since import opening in 2008. It was ranked first in the domestic imported meat market for six consecutive years. Citing customs clearance data from the US Customs Service, the US Meat Export Association announced on the 17th that of the total beef imports of 474.51K MT last year, US beef accounted for 256.91K MT, 2.8% increase from the previous year, accounting for 54.1%. Total imports of US beef was USD 2.54B. The US Meat Export Association analyzed that this was not only because the food culture of enjoying US beef in various ways has expanded, but also because consumers' awareness of US beef has improved and their willingness to purchase has greatly increased. It is expected to become the largest exporter of US beef. According to the United States Department of Agriculture (USDA) standards (January to November 2022), South Korea was the number one exporter, ahead of Hong Kong, China, and Japan.
US: The Government Opened the Registration for the Export of Beef to the US (Jan 22)
The registration for the export of beef to the United States will open as of Jan 22, and for a term of 10 days, as established by the Ministry of Agriculture in resolution 233/2022 published in the Official Gazette. The United States Department of Agriculture (USDA) granted Argentina an annual tariff quota of 20K MT of boneless, fresh, chilled or frozen meat, and the new quota period will begin on January 1.
Australia: Beef Export Levels Drop to Their Worst Levels in 19 Years (Jan 16)
Australian beef exports plummeted to their lowest figure in 19 years. The amount reached 854.59K MT in 2022 and was the lowest since 2003. According to Meat & Livestock Australia, the drop was due to the reduction in the number of slaughters and not so much to the drop in demand. It is estimated that in 2023 sales can grow and the livestock census will recover. Since Australia's Department of Agriculture in its December Commodity Report forecast a 5% reduction in beef export volumes in 2022/23 compared to 2021/22 due to high livestock prices, wet conditions and limited capacity at processing facilities due to labor shortages. Another of the factors that are limiting Australian meat exports is the lack of labor.
Australia: Beef Exports Historically Low (Jan 17)
Between 2021 and 2020, overseas beef sales in Australia have already fallen by around 15%. They are now at their lowest level since 2003, when the bovine spongiform encephalopathy (BSE) crisis caused international demand to collapse. The drop in Australian beef exports by around a third in three years is due less to the consequences of the coronavirus pandemic and more to a low supply of slaughter cattle. Livestock population is low due to drought. The cattle herd has already reached one of its lowest levels in 2020 as a result of previous droughts and will only recover again when the forage base improves. The effects of storms and labor shortages, along with soaring beef cattle prices, have slowed exports recently. However, in 2023, beef exports are expected to exceed 1M MT again.
Australia: Australian Meat Exports Fall, Ireland Exports to China Again (Jan 20)
Two recent events in the last week have shaken the global beef market. On the one hand, Australia, one of the largest exporters of protein, reported the lowest sales results in 19 years. On the other hand, Ireland regained admissibility in China to sell meat after 2 and a half years of suspension. Australia's beef exports in 2022 plummeted to a 19-year low, according to Beef Central.
Mexico: Veracruz and Jalisco, the Livestock Giants in Mexico (Jan 16)
During the first 11 months of 2022, the national production of chicken, beef and pork meat totaled 6.9M MT, 2.9% more than that registered during the same period of 2021, this according to reports from the Agri-Food and Fisheries Information Service ( SIAP). Regarding bovine meat, the accumulated processing until November was located at 1.9M MT, a figure that compared to January - November of the previous year, was higher by 2.3%. For this protein, the largest producer was Veracruz with a total of 233.382K MT, then Jalisco, San Luis Potosí, Durango and finally Baja California.
Argentina: Will Be Able to Export Meat to Mexico After 22 Years of Negotiations (Jan 16)
The Argentine Ministry of Agriculture, Livestock and Fisheries announced an official communication was received from the Mexican Sanitary Service (Senasica) notifying the conditions under which the opening of the market for boneless and matured bovine meat from Argentina remains operational. The export of these products, in this way, was achieved after 22 years. The official also highlighted that Argentina already has the main export markets open, such as the EU, the United States, China, Chile, Israel, among others.
Argentina: They Approved the Chopping and Mechanical Means for the Sale of Meat (Jan 17)
The measure establishes the maximum limit of 32 kg for handling, but also enables the use of mechanical means for medium carcasses. The standard is for greater occupational safety and safety. The Ministry of Agriculture, Livestock and Fisheries approved the implementation of chopping meat together with the Technical Advisory Board, which establishes a fractionating limit of up to 32 kg per piece to be loaded by workers and the use of mechanical means and rails to half cattle, reported today the national portfolio through a statement. This measure comes after several months of joint work between the national government and the provinces. According to what was reported, the objective is to guarantee higher quality and health standards for meat products, promote commercial transparency and move forward with a greater modernization of the meat processing industry in terms of occupational safety.
Argentine: Final Agreement for Exporting Meat to Mexico (Jan 18)
The Mexican Health Service signed the last papers so that 22 Argentine meat companies are now authorized to send cuts to that market. In 2021, Mexicans imported 86K MT of fresh and frozen boneless meat, for USD 750M. After a series of negotiations, Argentine beef met all the requirements to enter Mexico. As reported by the Ministry of Agriculture, the Mexican Sanitary Service (Senasica) notified the conditions under which the opening of the market to Argentine beef remains operational. As of this decision, some 22 national meat companies are in a position to start exporting to Mexico. The negotiations to open this market lasted for almost ten years.
Argentina: Mercosur Achieves a Record in Beef Exports in 2022 (Jan 20)
In 2022, Mercosur achieved historic volumes of beef exports, a total of 3.4M MT, 16.4% above 2021. Of the 4 countries, 3 reached new ceilings: Brazil, Argentina and Paraguay, while the shipments from Uruguay were slightly lower than the previous year. This was revealed by a report by the Mediterranean Foundation, cited by the Argentine media outlet Los Andes, which revealed that the bloc's beef exports were a record last year.
New Zealand: Local Sale-Yard Prices of Meat for W2 (Jan 20)
The average export price trends for W2 were as follows:
W2 prices vs. (W50 prices):
- Steer NI P2, 300kg - USD 3.72kg (NZD 5.80/kg) vs. (USD 3.98/kg (NZD 6.20/kg)) - 6% decrease,
- Export Bull, USA - USD 5.19/kg (NZD 8.09/kg) vs. (USD 5.12/kg (NZD 7.98/kg)) +1% increase.
Overview: Prices are expected to stay under pressure as volumes increase due to good grazing conditions. FYI: Steer = a male cattle beast castrated when young; NI = North Island of New Zealand; P = fatness, a light to medium fat cover, 3–10 mm deep; 2 = muscling class 2, good muscle development; 300kg = steer carcass weight
Colombia: Free Way for the Export of Beef, Pork, Poultry, and Dairy Products to Cuba (Jan 17)
Colombia obtained the authorization after the recognition of the Colombian official inspection system as equivalent to that of the Caribbean country. According to the Ministry of Commerce, this was the result of the audit carried out by the National Center for Animal Health, Cenasa de Cuba, in November and December 2022.
The Colombian Federation of Livestock Farmers, according to the report prepared by the Office of Planning and Economic Studies of Fedegán-FNG with data from DANE, made public that in the first 11 months of 2022 livestock exports totaled USD 482.55M (445.49M euros) in FOB value. By sectors, the most outstanding was that of livestock, which registered USD 284.7M (€262.84M), while those of meat and offal were USD 180M (€166.18M), and those of derivatives Dairy products reached USD 17.8M (€16.43M). Exports of live cattle. In November, exports of live cattle fell, after the recovery quarter of August-September-October, when more than 30K heads were shipped per month on average. This month only 16.38K animals were sent for an FOB value of USD 12.42M (€11.47M).
Colombia: The Price of Meat Is Skyrocketing in Cities of Cúcuta and Barranquilla (Jan 18)
The increase in meat prices in some cities of Colombia causes concern due to the impact it generates on consumers. Some of the causes would be the repercussions of the rainy season. So far in January, the price of beef in Cúcuta has risen between USD 0.022 and USD 0.067 ($100 and $300 pesos), however, the rise in prices has been occurring since last year, and both the production chain and consumers are affected facing this situation. The Central de Abastos de Cúcuta (cenabastos) assures that this protein remains at a high price and that butchers currently buy the meat for sale at a price of USD 3.72/kg ($16.70K pesos).
The National Korean Beef Association urged the government to come up with a supply and demand plan, saying that farmers who had suffered financial difficulties due to a drop in cattle prices made an extreme choice. They also declared that he would take collective action if the government does not come up with a countermeasure. The National Korean Beef Association issued a statement on the 16th and said that two farmers made extreme choices at Korean beef farms in Yecheon-gun, Gyeongbuk and Eumseong-gun, Chungcheongbuk-do on the 13th. The association argued, "The production cost per head of Korean beef is USD 8.937K (11 million won), but the average wholesale price is only about USD 5.687 (7 million won).”
South Korea: Even in the Recession, the Korean Beef Set Is in Demand (Jan 19)
Despite the slowdown in consumption due to high prices and high interest rates, it has been confirmed that department store Hanwoo beef sets, which are synonymous with high-priced holiday gifts, showed a double-digit increase in sales compared to last year just before the Lunar New Year. Analysts say that the price of Korean beef has recently dropped by more than 10%, and the strategy of increasing customized gift sets targeting “cherry-sumers” (frugal and strategic consumers), tailored to the parts and prices customers want, has been successful. On the 18th, the Dong-A Ilbo compared the sales growth rate of Korean beef gift sets for the two weeks from the 2nd to the 15th of this month of 4 department stores (Lotte, Shinsegae, Hyundai, Galleria) and 3 large marts (E-Mart, Homeplus, Lotte Mart) compared to the same period last year.
Ukraine: During the Year, the Price of Beef Increased by 4% (Jan 16)
In December 2022, the average consumer price for beef increased by 1.3%, up to USD 5.56/kg (UAH 203.18) against USD 5.49/kg (UAH 200.65) in November. During 2022, the average consumer price of beef increased by 3.9% from 5.35/kg (UAH 195.61) in January. The price maximum fell in March USD 6.06/kg (UAH 221.45). The State Statistics Service notes that the data are given without taking into account the temporarily occupied territory of Crimea, Sevastopol and part of the temporarily occupied territories in the Donetsk and Luhansk regions.
China: In 2023, China’s Demand for Red Meat Will Grow (Jan 16)
Despite the challenges of the current wave of covid-19 infections in China, the 2023 beef and pork import forecasts are revised upwards and are expected to be higher YoY. Beef production will be around 59.3M MT and exports will be around 12.2M MT. World beef carcass prices have declined as of 2023, except in the United States. However, carcass prices among major exporters remain relatively high compared to pre-pandemic levels, suggesting limited supply and firm demand from key markets. Imports from China increase due to the lifting of COVID-19 restrictions, which will strengthen the demand for HRI. Australia and Brazil are expected to gain market share due to lower exportable supplies in the United States, Uruguay and Argentina. US imports are also up as lower US beef production supports additional imports from Brazil and Australia.
China: Why Will China Import More Red Meat and Pork in 2023? (Jan 18)
According to the USDA, imports of beef and pork will increase this year in Asian countries, while those of chicken will decrease. Considering that China's meat import figures for the fourth quarter of 2022 were stronger than expected, the 2023 beef and pork import forecasts are reported to be higher and higher YoY, says the United States Department of Agriculture (USDA). According to the Eurocarne portal, beef imports are expected to grow in 2023, however, the pace of merchandise entering China will slow down as importers have frozen products that must enter the market before investing in additional purchases. Some of the reasons why more meat is expected to be imported in China by 2023 is due to the projected economic recovery, as well as the anticipated reactivation of the hotel, restaurant and institutional sectors, which will support the expansion of consumption and imports of beef and pork.
China: The Upcoming Chinese New Year Slows Down the Uruguayan Beef Market During W3 (Jan 20)
Uruguayan commercial operations with the Chinese market registered a slowdown at the start of W3 due to the proximity of the Chinese New Year, the most important festival in the Chinese calendar. Most offices closed during the week and will reopen at the end of January. As a beef price reference for W3, the full shoulder was sold at USD 4.7K/MT and the forequarter 90 VL at USD 4K/MT, both CFR.
