Argentina’s Beef Exports Plunge in March, Consortium Reports

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.

Sharp Decline in Volume and Value

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.