New Global Top Beef Buyer: Emerging Region
- Argentina's beef market presents a complex picture in early 2025.
- Despite successes in markets like the United States, Israel, Europe, Chile, and Mexico, Argentina remains heavily reliant on exports to China.
- Shipments of chilled beef to Europe are decreasing, largely due to a shortage of Hilton steers, which is affecting the export industry.Based on shipment trends observed in December...
Argentina’s Beef Industry: Balancing Exports and Domestic Consumption in 2025
Table of Contents
- Argentina’s Beef Industry: Balancing Exports and Domestic Consumption in 2025
- argentina’s Beef Export Boom and Domestic Struggles
- Decline in Chilled Beef Shipments to Europe
- Consumer Purchasing Power
- Global Beef Market Trends in early 2025
- Record High Prices for Lean Beef in the U.S.
- Argentina’s Beef Exports Soar Amidst Global Shifts
- RaboResearch: Beef Production Contraction Expected
- Argentina Approves Live Cattle exports as Beef Shipments Soar
- Argentina’s Beef Consumption Hits 30-Year low Amid Export Surge
- Argentina’s Beef Industry in 2025: Your Questions Answered
Published: 2025-03-10
argentina’s Beef Export Boom and Domestic Struggles
Argentina’s beef market presents a complex picture in early 2025. While exports are reaching new heights,domestic consumption is facing meaningful challenges. The country is experiencing a disparity between its performance in international markets and the situation at home.
Despite successes in markets like the United States, Israel, Europe, Chile, and Mexico, Argentina remains heavily reliant on exports to China. This dependence is a concern, as China has been offering low prices for several months, impacting the profitability of Argentine beef.
Decline in Chilled Beef Shipments to Europe
Shipments of chilled beef to Europe are decreasing, largely due to a shortage of Hilton steers, which is affecting the export industry.Based on shipment trends observed in December 2024 and january 2025, Argentine beef exports are projected to fall to approximately 830,000 tons this year. This represents an 11% decrease compared to 2024.
Growing demand in Southeast Asian Countries
A recent FAO-OECD document provides insights into the future of global meat production.It projects that by 2033, global beef production will reach 81 million metric tons (MT), an 8% increase from 2021-2023. Poultry production is expected to grow to 160 MT (+21%), and pork production to 131 MT (+9%).
The same FAO-OECD document estimates global beef imports for 2021-2023 at 13.17 MT. North America is expected to import 2.2 MT, europe 1.1 MT, and Asia, the new center of global demand, is projected to import 8 MT, accounting for 61% of global demand.
Notably, several Southeast Asian countries, including Malaysia, Thailand, Indonesia, Philippines, and Vietnam, are considerably increasing their beef purchases. These countries, which previously had minimal beef imports, are now collectively importing an estimated 1.35 MT. This volume is projected to reach 1.70 MT by 2033.
Over the next decade, beef imports are expected to decline in Europe and North America but increase sharply in Asia.
Consumer Purchasing Power
According to a chart shared by economist Fernando Marull,the average formal salary in Argentina can currently purchase 131 kilos of asado (barbecue). This is lower than the 1993-2024 average of 182 kilos, indicating a decrease in purchasing power.
Global Beef Market Trends in early 2025
Faxcarne reports that in January 2025, combined exports from Brazil, Argentina, Uruguay, Paraguay, the USA, and Australia increased by 1.5% compared to January of the previous year.However, average FOB prices were 12.7% higher year-on-year. These figures suggest that the market is stabilizing in terms of volume but experiencing improved international prices.
For feedlot operators, the calf/steer purchase/sale ratio typically improves in March compared to the previous month. The current ratio is approximately 1.12 to 1, while the average for March over the past 10 years is 1.17 to 1.
Record High Prices for Lean Beef in the U.S.
Import prices for lean beef (90 CL) in the U.S. are currently at a historic high, around $7,000 USD per ton CIF, matching the peaks of 2014 and 2020. The demand for lean ground beef is so strong that major users, like McDonald’s, are grinding “end-use” cuts such as sirloin, knuckle, and brisket.
U.S. cow and bull beef production, the primary source of lean beef for the industry, has fallen from 2.2 million tons (MT) in 2022 to a projected 1.7 MT (-23%) in 2025. It is estimated that 45% of beef in the U.S. is consumed as ground beef, with some recent studies suggesting this figure could be as high as 55%. This includes hamburgers, meatballs, tacos, fajitas, burritos, sausages, sauces, filled pasta, noodles, and more.
Argentina’s Beef Exports Soar Amidst Global Shifts
Argentina’s beef exports are experiencing a surge, reaching their highest volume in a century. In 2024, beef exports rose by 10%, totaling slightly more than 935,000 metric tons. The figure for 2025 is projected to be just under 981,000 tons.
This increase in exports comes as argentina approves live cattle exports, further boosting its presence in the global market. The country is adapting to changing demands and capitalizing on opportunities in key regions.
RaboResearch: Beef Production Contraction Expected
Global beef production is expected to contract amidst strong demand. Brazil, which accounts for a significant portion of south America’s supply, is projected to reduce its production. According to RaboResearch, “We expect brazil, which accounts for 63% of South America’s supply, to reduce its production by 500,000 metric tons this year.” This contraction could further impact global beef prices and trade flows.
Argentina Approves Live Cattle exports as Beef Shipments Soar
Argentina’s beef exports are experiencing a surge,reaching their highest volume in a century. In 2024, beef exports rose by 10%, totaling slightly more than 935,000 metric tons. The figure for 2025 is projected to be just under 981,000 tons.
This increase in exports comes as Argentina approves live cattle exports,further boosting its presence in the global market. The country is adapting to changing demands and capitalizing on opportunities in key regions.
Argentina’s Beef Consumption Hits 30-Year low Amid Export Surge
Argentina’s beef market is experiencing a significant disparity between record-setting exports and dwindling domestic consumption, hitting a 30-year low, according to the Chamber of Industry and Commerce of Meat and derivatives of the Argentine Republic (CICCRA). In january 2025, the apparent consumption per capita dropped by 3.2% to 47.0 kilos/year, or 1.5 kilos less than the previous year.
Argentina’s Beef Industry in 2025: Your Questions Answered
Argentina’s beef industry is a interesting case study of global trade, domestic economics, and shifting consumer preferences. This Q&A delves into the key trends shaping the industry in 2025, from export booms to domestic consumption challenges.
Key Trends in Argentina’s Beef Industry
Q: What’s the overall state of Argentina’s beef industry in early 2025?
A: Argentina’s beef industry in early 2025 is characterized by a meaningful dichotomy: booming exports and struggling domestic consumption.While exports are reaching record highs, domestic consumption has fallen to a 30-year low. This indicates a complex situation where the country is performing well in international markets but facing challenges at home.
Q: How reliant is Argentina on China for its beef exports, and why is this a concern?
A: Argentina is heavily reliant on exports to China. This dependence is a concern as China has been offering low prices for Argentine beef for several months, negatively impacting the profitability of these exports. Diversifying export markets is crucial for the long-term stability of the industry.
Q: Are Argentina’s beef exports actually increasing?
A: Yes, Argentina’s beef exports are experiencing a surge, reaching their highest volume in a century. In 2024, beef exports rose by 10%, totaling slightly more than 935,000 metric tons. the projection for 2025 is just under 981,000 tons. This increase coincides with Argentina’s approval of live cattle exports, further boosting its global market presence.
Q: How is declining domestic consumption affecting the Argentinian people?
A: The Chamber of Industry and commerce of Meat and derivatives of the Argentine Republic (CICCRA) reports that apparent consumption per capita dropped to 47.0 kilos/year in January 2025. This figure represents a 3.2% decrease, or 1.5 kilos less than the previous year, marking a 30-year low.
Global Demand and Export Markets
Q: Which countries are Argentina’s primary export markets for beef?
A: argentina has successfully exported beef to several markets, including:
The United States
Israel
Europe
Chile
Mexico
However, it remains heavily reliant on China, as mentioned earlier.
Q: Why are chilled beef shipments to Europe decreasing?
A: chilled beef shipments to Europe are decreasing due to a shortage of Hilton steers. This shortage is directly affecting the export industry’s ability to meet European demand for high-quality chilled beef.
Q: How are global beef imports expected to shift in the coming years?
A: According to an FAO-OECD document, global beef imports are expected to shift significantly:
Asia: Imports are projected to increase sharply, becoming the new center of global demand.
Europe & North America: Imports are expected to decline.
Q: Which Southeast Asian countries are increasing their beef purchases?
A: Several Southeast Asian countries are significantly increasing their beef imports, including:
Malaysia
Thailand
Indonesia
Philippines
Vietnam
these countries are projected to import an estimated 1.70 MT by 2033.
economic Factors and Consumer Impact
Q: How has consumer purchasing power for beef changed in Argentina?
A: Consumer purchasing power for beef has decreased in Argentina. Economist Fernando Marull shared a chart showing that the average formal salary in Argentina can currently purchase 131 kilos of asado (barbecue). This is lower than the 1993-2024 average of 182 kilos, indicating a significant decline in purchasing power.
Q: How are global beef market trends affecting Argentina?
A: Faxcarne reports that combined beef exports from major exporting countries increased slightly in January 2025, with higher average FOB prices year-on-year.This suggests a market that is stabilizing in volume but experiencing improved international prices, which could benefit Argentine exporters.
Q: How are calf/steer purchase/sale ratios impacting feedlot operators in Argentina?
A: The calf/steer purchase/sale ratio typically improves in March. The current ratio is approximately 1.12 to 1, whereas the average for March over the past 10 years is 1.17 to 1. this ratio is an significant indicator of profitability for feedlot operators.
Global Pricing and Production
Q: What’s driving the record high prices for lean beef in the U.S.?
A: Import prices for lean beef (90 CL) in the U.S. are currently at record highs. This is driven by:
Strong demand for lean ground beef.
Decreased U.S. cow and bull beef production.
Major users, like McDonald’s, are even grinding “end-use” cuts like sirloin to meet demand.
Q: How is Brazil’s beef production impacting the global market?
A: RaboResearch projects that Brazil, which accounts for a significant portion of South America’s beef supply, will reduce its production by 500,000 metric tons this year. This contraction is expected to impact global beef prices and trade flows, potentially creating further opportunities for other exporting countries like argentina, provided they can balance exports with domestic needs.
Summary of Argentina’s Beef Industry in 2025
| Factor | Trend | Impact |
| ————————– | ————————————————————————————- | ——————————————————————————————- |
| Beef Exports | Increasing | Boosts revenue but strains domestic supply |
| Domestic Consumption | Decreasing | Impacts Argentinian diets and affordability |
| Reliance on China | High | Vulnerability to price fluctuations |
| Chilled Beef to Europe | Decreasing | Loss of premium market share |
| Demand in Southeast Asia | Increasing rapidly | New opportunities for export diversification |
| Consumer Purchasing Power | Decreasing | Makes beef less accessible to the average Argentinian |
| US Lean Beef Prices | High | Presents opportunities for exporters of lean beef |
| Brazil’s Production | Contracting | Potential for other exporters like Argentina to fill the gap |