W4: Weekly Beef Update
Live Beef
US: They Seek to Introduce Country of Origin Labeling for Beef (Jan 27)
US Senators from both parties are pushing the Beef Source Labeling Act to reinstate the mandatory seal. In this way, only meat obtained from animals slaughtered within that country would carry the "Product of USA" label. Republican Senators John Thune and Mike Rounds, and Democrats Jon Tester and Cory Booker reintroduced the American Beef Labeling Act, a rule that would reinstate Mandatory Country of Origin Labeling (MCOOL) for beef. This legislation would require the Office of the US Trade Representative (USTR), in consultation with the Secretary of the US Department of Agriculture (USDA), to develop an instrument consistent with World Trade Organization guidelines ( OMC) to restore the seal within the year following the promulgation of the law.
Ireland: Number of Cattle Slaughtered Rose by Nearly 7% Last Year (Jan 26)
The number of cattle slaughtered between January and December last year increased by 6.7% compared to the same period in 2021, according to the Central Statistics Office (CSO). The data shows that over 1.9M cattle were processed in Ireland during 2022, up from almost 1.8M the previous year. November saw the highest number of cattle slaughtered at 179.5K head.
France: Breeders Warn of a Shortage of French Beef (Jan 25)
The drop in the number of cows raised in France is reflected in a "shortage" of French beef, and an increase in imports, the federation of cattle breeders (FNB) warned on Jan 25. This specialized federation of the majority union FNSEA brings together producers of suckler cows, that is to say raised for meat. Against a backdrop of unreplaced retirements, work stoppages and climatic hazards, the herd in France, Europe's leading beef producer, is contracting: -11% in six years. France has lost 837K cows (dairy and suckler) since 2016, including 494K suckler cows, detailed the FNB, citing figures from the French Livestock Institute (Idele). Imports from Poland, "decapitalization", according to the term used in the profession, leads to a "shortage of French beef" even though consumption is stable, underlined Bruno Dufayet.
Brazil: Difference Between Cattle and Cow Prices Break the Record (Jan 26)
The average difference between the prices of arrobas of male and female animals ready for slaughter, both sold in the São Paulo market, reached the highest level for the beginning of the year. According to data from Cepea, the difference between the average values is an expressive USD 4.68/arroba (23.48 Reais) in this part of January (until the 24th), with an advantage for the male. This is the biggest difference in Cepea's monthly historical series for these products for the first month of the year, which started in 2000 in the case of cows. This scenario is due to the maintenance of male animal prices and also to the fall in cow prices. From December/22 to this month's partial, while the arroba of live cattle in the São Paulo market presents a nominal devaluation of 2.7%, the price of the cow registers a more intense fall, of 4.31%.
Brazil: Stable Arroba Price in São Paulo (Jan 27)
The good offer of cattle, added to a more restrained flow of beef, has pressured the quotations in the live cattle market. Despite the bearish signs throughout the week, benchmarks for the market were flat compared to the 1/25. In Southeast, MT, the increasing supply of females, the difficulty in selling meat and alternate days for slaughter resulted in a drop of USD 0.60/@ (R$3.00) of fat heifers, in the daily comparison. In Paragominas, PA, the lower buying momentum on the part of industries and the relatively high supply of finished cattle led to a drop of USD 0.60/@ (R$3.00) of live cattle, in a day-to-day comparison.
Spain: Spanish Government Put a Maximum Number of Heads of Cattle per Farm (Jan 24)
The Spanish Government has made a key decision for livestock. He launched a decree limiting the number of heads of cattle per farm, thus "organizing" the producers. Learn more details. The Bichos del Campo portal explains that at the end of 2022, and after a long public consultation process, the Spanish government set a limit on the number of heads of cattle for establishments dedicated to cattle breeding, both in production systems of meat as of milk. Royal Decree 1053/2022 of December 27 establishes "the basic standards for zootechnical and sanitary management of cattle farms, as regards the maximum productive capacity, the minimum conditions of infrastructure, equipment and management, location, biosecurity, animal welfare, hygienic-sanitary conditions and environmental requirements”.
Spain: Catalonia Appreciates the Work of Veterinarians to Achieve Bovine Tuberculosis-Free Status (Jan 25)
As recently reported by Animal's Health, the European Union has declared Catalonia an area officially free of bovine tuberculosis, a chronic disease that affects cattle, as well as other domestic and wild animals. This recognition, as highlighted by the Department of Climate Action, Food and Rural Agenda of Catalonia, is "the result of the effort and joint work of the sector", from farmers to the Administration, companies, laboratories, mainly IRTA-CReSA, and, "Very particularly, of the qualified veterinary personnel of the Sanitary Defense Groups and the Official Veterinary Services that during more than 30 years of disease eradication programs have been working intensely to achieve this objective." For all these reasons, the Department has recognized the effort and dedication of the sector during all these years of fighting the disease.
The European Commission has published the declaration of free status of bovine tuberculosis of the autonomous communities of the Balearic Islands, Catalonia and Murcia, as included in the Implementing Regulation 2023/150 published on Jan 24 in the Official Journal of the European Union (DOUE). Said regulation will enter into force three days after its publication, indicated sources from the Ministry of Agriculture, Fisheries and Food. In this way, the continuous progress of the program to eradicate this disease is revealed, after the declaration of tuberculosis-free cattle, in previous years, from Asturias, the Canary Islands, Galicia and the Basque Country.
Paraguay: Cattle Herd Has Decreased by 1M Head Since 2014 (Jan 24)
The cattle herd in Paraguay maintains a figure of 13.2M bovines, which means that it has decreased by 1M heads systematically since 2014, according to figures provided by the National Service for Quality and Animal Health (Senacsa). According to the latest Senacsa report, echoed by local media this weekend, the country registered a total of 333.7K MT of beef exports, exceeding the 326.7K MT exported in the entire previous year. Shipments from January to December 2022 represent an increase of 2.09% compared to 2021. Regarding foreign currency income, beef exports left more than USD 1.722B in 2022, an increase of 7.16% compared to the USD 1.598B of the same currency generated last season.
Argentina: The Rise in the Price of Farms Puts Pressure on the Increase in Meat (Jan 26)
The price of the consumer farm rose from Jan 20- 25 between 15.26% and 19.57% depending on the category in the Cañuelas Agricultural and Livestock Market (MAG), in a rearrangement of the sector that could have repercussions in increases in the value of meat to the public. According to specialists and references from the livestock and meat industry consulted by Télam, the increases respond to a readjustment of prices after the delay compared to inflation that occurred last year, as well as the advent of rains and a lower supply of heavy animals by feedlots. In this way, the average price of the steer went from USD 352.61/kg to USD 406.43/kg, while the steer rose from USD 347.40/kg to USD 415.37/kg.
Uruguay: Brucellosis, Official Service Will Be Able to Categorize Properties (Jan 23)
The Ministry of Livestock, Agriculture and Fisheries, issued a resolution that allows the Animal Health Division, at the proposal of the Department of Sanitary Programs (UNEPI), "recategorize the properties interdicted for bovine brucellosis, based on monitoring and epidemiological criteria." The resolution establishes that for these purposes "it may order the investigations it deems necessary, according to the conditions, requirements and procedures that will be established for these purposes."
UK: There Was Increase in Beef-Sired Calf Births in Norther Ireland in 2022 (Jan 25)
There was an increase in beef-sired calf births registered in Northern Ireland during 2022, according to the Livestock and Meat Commissions’ (LMC’s) recent analysis of Animal and Public Health Information System (APHIS) information. This increase, the LMC said, represents a reverse in the trend of declining beef calf births in the Northern Irish beef sector throughout the second half of the last decade. Last year, 377.654 beef-sired calf births were registered on Northern Ireland farms, which is 6,999 more than 2021. Compared to 2012, ten years ago, it is a 14.2% increase. What is consistent between the years 2012 and 2022 however, is the most popular breed when it comes to sires. In both years, the same six breeds accounted for over 90% of beef-sired calves.
Belarus: Approval of a Plan for the Harvesting of Cattle Skins (Jan 26)
The plan for 2023 for the procurement of raw hides of cattle (cattle) for state needs was approved in Belarus. In 2023, it is planned to procure 940.3K cowhides. The biggest plans for the procurement of the mentioned raw materials are assigned to the Brest and Minsk regions. The regions must supply 216K and 215K cattle skins. The customer of raw materials from the state is the concern "Bellegprom". The Council of Ministers of Belarus obliged the concern to conclude agreements with the regional executive committees of the republic for the supply of skins.
Colombia: Vaccinated 98.9 % Of the Bovine and Buffalo Herd Against Foot-And-Mouth Disease (Jan 23)
The final report of the vaccination cycle against foot-and-mouth disease and bovine brucellosis indicates that Colombia protected during the 2nd cycle of 2022, 98.9% of its bovine and buffalo herd against foot-and-mouth disease, by vaccinating 29.3M animals The successful animal vaccination day was carried out between November 8 and December 22, 2022 throughout the Colombian territory. The report also reveals that coverage in farms was 98.1% for a total of 603.47K vaccinated farms.
From February 20 to March 21, an additional vaccination cycle against foot-and-mouth disease will be carried out in the border area with Venezuela, announced the Colombian Agricultural Institute (ICA). According to information from the entity, farmers whose bovine farms are located in the departments of La Guajira, Cesar, Norte de Santander, Arauca, Vichada and in the municipality of Cubará in Boyacá, must immunize their animals against foot-and-mouth disease. It is worth remembering that in the cycle that ended on December 22, 2022 and that was carried out at the national level, departments such as Arauca stood out, where 99.9% vaccination coverage was achieved.
Colombia: The Cattle Population of Cauca Has Been Reduced Due to the Effect of Blockades in the Past (Jan 26)
In the department of Cauca, the livestock inventory has been declining worryingly, according to the director of the Department's Livestock Committee, Hernán Garcés. According to the leader, what has been working on vaccination shows that it went from 340K animals to 288K, which is very worrying. At first it is thought that it may be due to the disinvestment of some ranchers who were significantly affected by the blockades that occurred last year. “Many people had to sell or slaughter their animals in order to survive during the 45 days that the last road blockade by protesters lasted,” he said.
In the Belogorsk region of Crimea, an outbreak of brucellosis occurred among cows in one of the farms. As a result, nine people became infected, Interfax reports, citing the chairman of the State Veterinary Committee of the republic, Valery Ivanov. According to him, the first case of brucellosis was detected in a farmer of one of the farms on December 12. All 130 diseased animals were destroyed. Similar measures were taken in the neighboring farm.
As the EC body informed last week, the program was approved under the relevant subsidy framework adopted in 2022. The program provides for assistance in the form of direct subsidies. According to the EC, the aim of the government project in Romania is to compensate eligible beneficiaries for part of the additional costs they incur, in particular as a result of the increase in fuel, energy and animal feed prices. Not more than USD 274.62K (250K euros) per company. Farmers will also be helped to overcome the financial difficulties of the current geopolitical crisis. The EC emphasizes that the aid may not exceed USD 274.62K (EUR 250K) per beneficiary. The corresponding funds would have to be granted by the Romanian government by 31 December 2023 at the latest.
Fresh Beef
US: Beef Quotes on the CME Exchange Fall Due to the Growth of Production in China (Jan 23)
From Jan. 13 to Jan. 20, the bovine meat and pork futures market on the Chicago Mercantile Exchange moved in the same direction. Although during the week the quotations of pork and cattle meat were not stable, by the end of the week the quotations of cattle meat in live weight, fattening and pork fell, losing from 0.70% to 1.83%. Live weight quotations for cattle decreased from USD 1.5773 to USD 1.5663 per pound, 0.70%. Quotations of fattening cattle fell from USD 1.8125 to USD 1.7793 per pound, 1.83%.
US: Beef Exports Remain Strong (Jan 24)
Exports will be a key driver for the US cattle and beef markets in 2023. The maintenance of export demand will be influenced by what happens in the currency markets. Beef export data continues to show overall growth, but with a high level of economic uncertainty around the world as headwinds remain strong. Beef exports accounted for 12.2% of total annual production in 2021. The share of exports increased slightly in 2022. The World Agricultural Supply and Demand Estimates, prepared and released by the World Agricultural Outlook Board, show that beef export forecasts are down by around 13% in 2023 compared to 2022, and import forecasts are down by around 1% with its forecasts reflecting supply realities in the United States and abroad. A weaker US dollar is needed to offset some of the expected increase in export prices. Any continued strengthening of the US dollar would not bode well for exports. A stronger US dollar means international buyers have to pay more in their own currency to buy US beef. A strong US dollar also tends to support US beef imports, as it effectively lowers the price of beef in other markets.
Ireland: Irish Factories Begin Kills of Cattle for Export to China (Jan 27)
At least two Irish beef factory chains have started processing cattle that are eligible for export to China. These beef kills took place today on January 27 at a number of outlets across the country and half-day kills of suitable cattle took place at other outlets earlier this week.
Ireland: 24 Irish Sites Approved for Export of Beef to China (Jan 28)
The resumption of Irish beef exports to China was announced by the Minister for Agriculture, Food and the Marine, Charlie McConalogue, at the beginning of this year. The development was welcomed by all stakeholders in the Irish beef industry as the Chinese market imported over 12K MT, USD 105.38M (€96M) worth of Irish beef in 2019. However, markets have changed significantly since then, and it will be interesting to see what volumes of beef will be exported to China from Ireland this year.
Mexico: In 2022, Mexico Imported 2.5M MT of Meat, an Increase of 4% Compared to 2021 (Jan 26)
At the end of last year, in 2022 total imports of pork, beef and poultry meat increased 4%, amounting to 2.5M MT. Being self-sufficient in beef, this protein was the one with the least amount imported by Mexico, with falls of 3% in volume and 7.1% in value, ending the year with 169.07K MT for USD 1.15B.
Poland: Meat Market (Jan 29)
In the second week of January 2023, domestic suppliers for slaughter cattle obtained USD 2.51/kg (PLN 10.74), and therefore less by 1% than in the previous week, but more by 1% than a month ago. Live beef was also 14.5% more expensive than in the comparable week of 2022. On January 9–15, 2023, beef quarters compensated from bulls up to 2 years old were sold at USD 4.99/kg (PLN 21.39), cheaper by 1% than in the previous week and by USD 0.0047/kg (PLN 0.02) than a month ago. The price of quarter carcasses was 12% higher than last year.
France: French Beef Production Expected to Decline in 2023 (Jan 24)
French beef production is expected to fall in 2023 for the third consecutive year, according to a press release from the Institut de L'Elevage IDELE. The reduction in dairy and suckler herds over the past 6 1/2 years is in fact limiting the availability of all categories of cattle. Consumption virtually stable at -0.5% would lead to a continued rebound in imports. Exports of weanlings will fall in the wake of suckler herds. After a drop of nearly -5% in 2022, net production of finished cattle should fall further in 2023 to 1.337M MT of carcass equivalent (-1.6%/2022).
The Brazilian Association of Zebu Breeders (ABCZ) received, on Jan 17), the news of the opening of yet another important market for national livestock. This is Indonesia, which, from now on, will be able to import Brazilian beef for its consumer market. The articulation work began many months ago and was led by MAPA (Ministry of Agriculture, Livestock and Supply), with the participation of ABCZ, through the Department of International Relations and companies that are part of the Brazilian Cattle project. Initially, 11 refrigerating plants were qualified to serve the Asian country and, in parallel, negotiations for qualifications for exports of other products continue. Many visits and inspections were carried out last month, during the technical mission of the Indonesian Ministry of Agriculture team, in Brazil.
Brazil: Brazilian Beef Exports Are Expected to Exceed the Global Average in 2023 (Jan 24)
Brazilian beef exports are expected to grow above the world average in 2023. The United States Department of Agriculture (USDA) estimates that the national industry exports 3.5% more than the 2022 volume, which was 2.345M MT. For the USDA, global exports as a whole will only grow by 0.5%. “This projection shows the potential of Brazilian meat in its mission to feed the planet. More than that, it reflects the commitment of our farmers to invest in technologies, such as quality genetics, which make it possible to increase productivity and efficiency”, highlights Cristiano Botelho, executive of the Brazilian Association of Artificial Insemination (Asbia).
Brazil: Brazilian Beef Exports Were Extremely Bulky in 2022 (Jan 26)
Data collected from the foreign trade data system indicate that there was a strong recovery in the volume of beef shipped after the decline seen in the previous year. The volume shipped reached 2.263M MT, representing a significant increase of 22.7%. The history of recent years points out that after starting annual growth from 2017 and surpassing the 2M level in 2020, exporters were unable to sustain growth and the volume shipped fell 7.4% in 2021. Last year the result was an increase of 12.7% in 2 years, 46.8% in 8 years, meaning an average annual growth of almost 5%. It is the same growth rate predicted for 2023 according to CONAB, although the USDA in its October report last year estimated an increase of only 1% for exports from Brazil. In any case, the possibilities are positive for the current year. It remains to wait for them to actually materialize.
In the week starting January 23, 2023, Tridge's Brazil Fresh Whole Beef Index, which comprises beef prices in Sao Paulo and Pernambuco wholesale markets, rose 4.17% WoW to reach its highest level since December 20, 2021, at 122.27 (100 corresponds to the price in December 30, 2019). For reference, carcass (rear) prices in Pernambuco were USD 4.44/kg on Jan. 23. (Continue Reading)
Exports of beef in 2022 totaled 569.65K MT of product weight, which represents some 900K MT of bone-in beef, according to data published by INDEC. This means that they were not very far from the export record reached in 2020, when it reached 930K MT. At the same time, the volume shipped implies an increase of 12% compared to the total shipped in 2021, which was 803K MT, according to the Ministry of Agriculture. Official data shows, on the other hand, that there was a growth in the income of foreign currency sustained by the very good prices of the first half of the year, although they have fallen sharply in the second part of 2022. This is a phenomenon that affects all exporting countries equally. In 2021, USD 2.5B entered for this concept and this year it reached USD 3.45B. The increase in annual billing in hard currency was 38%.
Argentina: Argentine Livestock; More Slaughter, Consumption, Production and Export (Jan 24)
At the end of last year, bovine slaughter in Argentina amounted to 13.5M heads, which represented an increase of 3.9% compared to the records corresponding to 2021, since drought conditions led farmers to liquidate their herds to avoid losses. The figures presented by the Chamber of Industry and Commerce of Meat and Derivatives of the Republic (Ciccra), indicated that the increase in slaughter resulted in the production of 3.1MT of beef, reflecting an increase of 5.1%. Even with this scenario, consumption grew more than 1%. The agency reported that although the boost in processing was not due to increased demand, the per capita consumption of this animal protein did register a limited YoY rise of 1.1%, reaching 47.2Kg. Regarding exports, in 2022 Argentina positioned 900K MT in its trade markets, a tonnage 12.1% higher than the previous year, with China being its main destination, with a 76% share.
Argentina: Officialize the Meat Export Quota to Colombia (Jan 26)
The cuts belonging to said shipments do not include the so-called "fine cuts" that include the loin, rump end and broad loin not ground or cut into pieces, vacuum packed and labeled, which are governed by another quota. The Ministry of Agriculture, Livestock and Fisheries formalized the export quota for beef to Colombia corresponding to the current year, through resolution 24/2023 published on Jan 24 in the Official Gazette. Together with Europe (through the Hilton Quota and the 481), the United States, Israel and Chile, among other countries; Colombia is one of the destinations with pre-fixed meat quotas, arranged through the Economic Complementation Agreement No. 59 signed between Mercosur and the member countries of the Andean Community.
Argentina: Algeria Enabled the Import of Meat With Bone (Jan 27)
Algeria enabled its market to import bone-in meat from Argentina and accepted the proposal of the National Agri Food Health and Quality Service (Senasa) to update the certificate that accompanies shipments of boneless fresh chilled bovine meat packaged to the vacuum, extending the shelf life of the meat to 120 days. The Secretary of Agriculture, Livestock and Fisheries of the Nation, Juan José Bahillo, stressed that "the progress achieved is very auspicious for our country's international trade".
Argentina: Meat Workers Ask the Government Not to Mess Around With Media Anymore and Enable Media (Jan 27)
In 2020, echoing the demand of the meat unionists, the labor authorities imposed a ban on the manual loading of pieces of meat over 25kg (later this weight was increased to 32kg), to take care of the health of workers. In 2021, taking advantage of the return of the stocks on meat exports, the exporting refrigerators agree with the government (the former ministries of Productive Development and Agriculture) and it is defined that the half beef will be prohibited and must be cut into pieces of no more than 32kg. In this way, a labor measure becomes a measure with a high commercial impact, since most of the meat in Argentina is transported as half cattle to the points of sale.
New Zealand: China and USA Support Local New Zealand’s Beef Industry With a Positive Outlook in 2023 (Jan 27)
The New Zealand beef producers and exporters have a positive outlook for the upcoming two to three years as a result of beef exports to China almost doubling from 20% of the market share to around 40% over the past couple of years with a high demand for lean and grass-fed beef from the USA. As a result of the Paris Agreement, there are challenges and a strong need for change, particularly regarding supply chain emissions. And this is supported by the government via regulatory requirements. Additionally, it is possible to anticipate increased competition and volume from countries like Australia and Brazil. In New Zealand, beef exports have increased by over 100K MT, about 22%, with highly favorable prices. Due to this, the industry is in extremely good condition, with a strong and loyal consumer base on a global scale.
New Zealand: Local Sale Yard Prices of Meat for W3 (Jan 27)
Prices of meat are under pressure across the board due to bad weather conditions locally and the state of the local and global economy. Here below are the export price trends for the W3 in New Zealand: Week 3 prices vs. (Week 2 prices):
Steer NI P2, 300kg - W3: USD 3.73/kg (NZD 5.75/kg) vs. W2: (USD 3.76/kg (NZD 5.80/kg)) - 0.9% decrease
Export Bull, USA - W3: USD 5.21/kg (NZD 8.03/kg) vs. W2: (USD 5.25/kg (NZD 8.09/kg)) - 0.7% decrease.
UK: Beef Production Increased Compared to 2021 (Jan 23)
During December, the UK produced 74.8K MT of beef and veal. This is 9.3K MT (11.1%) back in November, but 5.1K MT (7.3%) up on the same month last year. This brings total production for the year to an estimated 906.4K MT, a 1.9% (17K MT) uplift on 2021 production levels and roughly in line with the 5-year average (-0.2%). Prime cattle slaughter totaled an estimated 161.7K head, back 16.3K head (9.2%) in November. This brings total throughputs to 1.99M head for the year, a 1.5% increase on 2021 throughputs. Carcass weights for December averaged 342.1kg, up 0.6% (2.1kg) in November, the first increase in 6 months. They were however 3.1kg (0.9%) below the 12-month average for December of 345.6kg. YoY, the annual average carcass weight for 2022 eased by 0.3% to 345.2kg, which brings it to just under (0.4kg) the 5-year average.
Colombia: Beef Imports in 2022 Are Already the Highest in History (Jan 26)
According to the report of the Fedegán-FNG Economic Planning and Research Office made from the information registered by DANE, exactly 11,007MT of beef and offal were imported for a CIF value of USD 51.239M. Compared to the period January-November 2021, the volume grew 20% compared to the 9,174MT reported on that date, while the cost is 26.7% of the USD 40.52M it cost.
Russia: Cabinet Approves Tariff Quotas for Beef and Poultry Imports in 2023 (Jan 23)
The Russian government has distributed tariff quotas for the import of cattle meat (cattle) and poultry for 2023. Thus, the volume of the tariff quota for the import of fresh or chilled meat of cattle, established by the document, is 40K MT. Of these, 29K MT are supplied from the EU countries, another 11K MT from other states.
Russia: It Is Suggested to Add Brazilian or Kazakh Beef to the Sausage (Jan 26)
Producers of sausages and meat delicacies are waiting for the opening of the Russian market for duty-free beef, which is in short supply in the Russian Federation. But livestock breeders oppose it, suggesting that instead of Brazilian beef, "neighbor" beef, Belarusian or Kazakhstani, be dispensed with. Each side has its own commercial interests. Meat processors are interested in cheap raw materials for sausages, and livestock breeders are interested in the absence of competition from imports.
Russia: Meat Deliveries to China by Enterprises of the Moscow Region in 2022 Increased by 25% (Jan 26)
Enterprises of the Moscow region (including the Tula region) supplied 75K MT of beef and poultry meat to China in 2022, which is more than 25% more than in the previous year. Moreover, these deliveries accounted for more than half of the export products checked by the department and subject to veterinary supervision.
China: Chinese Meat Imports Will Be Higher This Year Than Initially Forecast (Jan 25)
Despite the wave of COVID-19 infections that China is suffering, its imports of beef and pork have been revised upwards (compared to those advanced in October 2022) and the new figures represent a slight increase over purchases made abroad last year. Beef imports will increase in 2023 (3.5M MT, compared to 3.4M MT in 2022), although the arrival of ships will be slower because importers still have frozen products in storage that they must place on the market. before investing in new purchases.
China: Low Activity in the Uruguayan Beef Demand During W4 (Jan 27)
The commercial activity of Uruguay with China in the middle of the Chinese New Year holiday celebrations was low during W4. Some businesses were closed for shin and shank at USD 6.6K/MT CFR, knuckle and outside flat between USD 5.6K- 5.7K/MT, and trimming 80 VL at USD 3.6K/MT CFR.
Indonesia Data Analysis: The Wholesale Price of Beef Increased by 7% MoM on Supply Shortages (Jan 24)
The wholesale price of beef in Indonesia increased by 7% MoM to USD 9.29/kg in W3 Jan-22. This is owing to a decrease in the domestic supply. For several months, there has been a foot-and-mouth disease (FMD) and lumpy skin disease (LSD) outbreak in Indonesia. This has significantly impacted the livestock industry in Indonesia. Indonesia will import more beef from Australia, which is its top beef supplier. Brazil will also gain more access to the Indonesian beef market after the announcement that an additional 11 processing factories are permitted to export beef to Indonesia. This will boost beef supply in Indonesia and prevent the price spike in the short term.
Frozen Beef
UK: Increases Import of Frozen Beef (Jan 24)
Imports of fresh and frozen beef totaled almost 19K MT in November. This is both a decrease on the month of 2.15K MT (10.2%), and 3.8K MT (16.8%) back on the year. Imports eased most notably from Ireland, both from the previous month as well as November last year. Irish imports totaled 14.6K MT in November, back 2.3K MT (13.8%) in October and almost 3K MT (16.9%) in the same month last year. Fresh imports eased in November, accounting for 66.3% of total imports, compared with 71.6% in October. There was a slight increase in frozen imports from the EU in the month, most notably Germany, Poland and the Netherlands, however increased trade with countries such as Brazil and New Zealand have helped bolster the frozen category. This trend supports recent industry commentary, highlighting that the global frozen meat market would increase by almost 5% by 2027, driven by changes in lifestyle and convenience trends.
