Friday, September 29

Meat: high prices compensated for the drop in exports in 2021

Once again, China was the main buyer of Argentina, absorbing 74.3%, that is, just over 424,300 tons. In second place but far behind was Chile with 5.9% (33,600 tons), followed by Israel with 5.4% (30,700 tons), fourth place went to Germany with 3.8% (21,900 tons). and completes the “top five” United States with 3.7% (21,100 tons).

“If the shipments of the year 2021 are compared with those corresponding to the period January to December of the year 2020, these showed a varied behavior in relation to the levels of activity that had been registered a year ago: Israel and Chile show a growth of moderate magnitude . China exhibits moderate negative variations; while the main destinations within the European Union and the United States show slight variations. Finally, Italy, Brazil and Russia show large-scale falls in the volumes of Argentine beef demanded”, explains the latest IPCVA report.

Another key fact is that Argentine beef exports fell by nearly 47,000 tons when comparing the last two years. Of that volume, about 39,300 tons correspond to lower shipments to China; and another 12,300 tons correspond to Russia, while the rest of the destinations together accumulate an expansion equivalent to about 4,800 tons.

As for the value of foreign currency received, the main market during the period has been China, which represents 60.3% of the total exported value of chilled, frozen and processed beef in the period, followed by Germany (8. 2%), and Chile (7.9%).

What will continue from now on in the beef export business, after the restrictions imposed on exports that were in force last year, is a relaxation of shipments of the so-called canned cow, while the export of seven cuts of popular consumption at the table of the Argentines such as roast, vacuum and matambre, among others.

The truth is that beyond the Government’s maneuvers to clearly try to contain the rise in prices in the domestic market, during 2021 the values ​​​​showed a year-on-year rise of around 65% and only in December did the rises exceed 10%. .

Meanwhile, January also began with an increase in meat prices in the domestic market of the order of 1.9% only in the first week, although it would have shown a slowdown in subsequent weeks. This is then one of the main concerns of the Government in this 2022, to contain the prices of this basic consumer product so that history does not repeat itself.

In parallel and despite the reluctance of some factions of ruralism, the Government continues to work on the implementation of a National Livestock Plan with which it seeks to increase productivity.