Argentine Beef Exports Drop 36.1% in March
Argentina’s Beef Exports Plunge in March, Consortium Reports
Table of Contents
- Argentina’s Beef Exports Plunge in March, Consortium Reports
- Sharp Decline in Volume and Value
- Factors Contributing to the Export Slump
- First Quarter Results Reflect Negative Trend
- China’s Reduced Demand Impacts Exports
- Decline Across various Meat Categories
- Other Markets Show Reduced Purchases
- Israel and Mexico Showed Stability
- Exports of Offal and Bovine Preparations
- Twelve-Month Performance
- Analyst’s Perspective
- argentina’s beef Export Slump: Your Questions Answered
Argentina’s beef export sector experienced a significant downturn in March, marked by reduced shipments, lower dollar revenues, and a diminished presence in key international markets. According to the Argentine Meat Exporters Consortium (ABC), beef exports plummeted 36.1% compared to March of the previous year.
The ABC reported that exports totaled 43,400 tons (shipping weight) of refrigerated and frozen beef, generating $205.9 million in revenue. This represents a 17.2% decrease in volume and a 20.1% decrease in value compared to February, according to the consortium.
Factors Contributing to the Export Slump
analysts suggest that the decline stems from a combination of factors, including falling international prices and expectations of currency adjustments, which prompted exporters to delay sales in anticipation of more favorable exchange rates.
Mario Ravettino, president of the Consortium, stated that export volumes were 36.1% lower compared to March of the previous year, while the value obtained was 20.1% lower. The drop compared to February was also considerable, with 9,000 fewer tons shipped and nearly $52 million in lost revenue.
First Quarter Results Reflect Negative Trend
The negative trend extended to the first quarter of the year. Between January and March, Argentina exported 142,500 tons of beef, a 28.4% year-on-year decrease. Currency income totaled $694.4 million, 7.5% less than in the same period of 2024.
China’s Reduced Demand Impacts Exports
A significant portion of the overall decline can be attributed to reduced demand from China, Argentina’s primary beef export destination. Boneless meat purchases by China fell by 52%, from approximately 36,000 tons per month between August and November 2024 to just 17,161 tons in March. Exports of bone-in meat also decreased by 25% compared to the same month last year.
The average price of boneless meat shipped to China in March was $4,191 per ton, significantly lower than the peak value of $5,900 reached in may 2022.
The report indicated that in March, 12,200 tons of bone-in meat were shipped to China, valued at $20.3 million, along with 17,200 tons of boneless beef, valued at $71.9 million.
Decline Across various Meat Categories
The overall decline was largely driven by a 43.8% year-on-year decrease in frozen boneless meat exports, totaling 23,600 tons, and a 22.6% decrease in boneless meat exports, with 7,400 tons shipped. Shipments of boneless meat to Europe experienced a sharp 35% drop, falling from approximately 4,600 tons to 2,980 tons, following the completion of the EU 481 tariff quota program.
The report noted that volumes dispatched to Europe are resuming a downward trend, falling below 3,000 tons. Europe purchased $36.2 million worth of beef in march.
Other Markets Show Reduced Purchases
Other markets also reduced their beef purchases. The United States, for example, imported 3,000 tons of refrigerated and frozen meat, valued at $20.4 million, making it Argentina’s fourth-largest export destination, behind China, Israel, and Europe.
Israel and Mexico Showed Stability
despite the general decline, some markets demonstrated stability.Israel remained the second-largest destination in terms of volume, with 3,600 tons exported in March (1,600 tons of chilled meat and 2,000 tons of frozen meat), with average prices of $8,233 and $6,756 per ton, respectively.
With the opening of the Mexican market in the second quarter of 2023, volumes have been steadily increasing in recent months. In March, 490 tons of chilled meat and 153 tons of frozen meat were shipped to Mexico, at average values of nearly $5,624 and $6,133 per ton, respectively.
Exports of Offal and Bovine Preparations
The report also included exports of offal and bovine preparations, which totaled 8,600 tons in March, valued at $15.1 million, with destinations including the United States, Russia, South Africa, and Hong Kong. Products such as bovine tongues (400 tons for $1.3 million),livers (1,795 tons for $1.5 million), and tails (800 tons for $1.8 million) maintained attractive prices, with spikes up to $3,251 per ton.
Twelve-Month Performance
In the accumulated total for the last twelve months, Argentina exported 713,400 tons of refrigerated and frozen beef, generating $2.972 billion.The general average price of exports in March was $4,747 per ton, 3.5% lower than February, but 25.1% higher than March of the previous year.
Analyst’s Perspective
Market analyst Victor Tonelli attributed the decline to economic conditions. “In March, there were low prices in China and other markets, and much less export was worked becuase they did not close the numbers.In addition, there was expectation of an exchange correction, and that took operations,” he explained. He added that export certificates have increased in the first two weeks of April.
argentina’s beef Export Slump: Your Questions Answered
This article provides insights into Argentina’s recent beef export performance, focusing on the March 2024 data released by the Argentine Meat Exporters Consortium (ABC).
What’s Causing Argentina’s Beef Export Decline?
According to the Argentine Meat Exporters Consortium (ABC),Argentina’s beef exports experienced a meaningful downturn in March. Exports plummeted 36.1% compared to March of the previous year.
Key Factors Contributing to the Slump:
Falling International Prices: Lower prices in key markets, particularly china.
Expectations of Currency Adjustments: Exporters delayed sales in anticipation of more favorable exchange rates.
Reduced Demand from China: A significant portion of the overall decline can be attributed to reduced demand from china, Argentina’s primary beef export destination.
How Significant Was the Decline?
The decline in Argentina’s beef exports in March was substantial across several metrics.
Key statistics:
Volume: Exports totaled 43,400 tons of refrigerated and frozen beef, a 17.2% decrease compared to February.
Revenue: The revenue generated was $205.9 million, a 20.1% decrease compared to February.
How Did the First Quarter of the Year Perform?
The negative trend extended into the first quarter of the year. Between January and March, Argentina exported 142,500 tons of beef, reflecting a 28.4% year-on-year decrease. Currency income totaled $694.4 million, which was 7.5% less than in the same period of 2024.
What’s the Impact of Reduced Demand from China?
China is Argentina’s primary beef export destination, and reduced demand from China significantly impacted overall export figures.
China’s Role:
Boneless Meat: Purchases of boneless meat by China fell by 52%.
Bone-in Meat: Exports of bone-in meat decreased by 25% compared to March of the previous year.
What Were the Average Prices in March?
The average price of boneless meat shipped to China in March was $4,191 per ton. This is significantly lower than the peak value of $5,900 reached in May 2022. The general average price of exports in March was $4,747 per ton,3.5% lower than February, but 25.1% higher than March of the previous year.
How Did Different Meat Categories Fare?
The decline was widespread across various meat categories.
Key Category Performance:
Frozen boneless Meat: Exports decreased by 43.8% year-on-year, totaling 23,600 tons.
Boneless Meat: A 22.6% decrease in boneless meat exports, with 7,400 tons shipped.
Boneless Meat to Europe: shipments to