September 23, 2013
China''s beef imports from Uruguay reach US$190 million in 2012-13
In the last agricultural year (July 2012-June 2013), China has become Uruguay''s main client for beef absorbing 25% of exports equivalent to US$190 million.
Uruguay exports totalled 390,000 tonnes according to the latest release from the country''s Meats Institute, INAC.
"The period was reasonably good in production and quite good in generated value, since total sales reached US$1.47 billion", said Pablo Caputti head of INAC Economic Info and Analysis department. That works out at an average US$3,800/tonne.
The surprising news is that during the 12-month period, and particularly in the last half China''s participation has soared removing traditional clients of Uruguay such as Russia which saw its share of market drop from 30% to 10%.
"We started selling offal to China since that is traditional and has a strong demand. But gradually they realised the quality of Uruguayan beef and started to buy hind quarters. They don''t buy the most expensive cuts because Europe still pays more and it is difficult for them to compete with those prices", said Caputti.
Caputti revealed that Uruguay''s strategy towards China is ''aggressive'' and it is in the interest of INAC to keep supplying the Asian giant more beef.
According to INAC statistics, beef sales to China in 2013 jumped 455% in volume and 522%. Uruguay is the world''s sixth exporter of beef.
Israel and Russia each of them had a 10% volume share of the Uruguayan beef market, while Mercosur and associate countries took about 15%.
The EU which traditionally represented 20% of exports is down to 15% because of the economic crisis, while the US and Canada took 20%. However despite all this, in value the most important market continues to be the EU with 25% of market share since they buy very expensive and prime cuts.
Due to its "privileged sanitary status" with an insignificant risk of ''mad cow'' disease and no foot and mouth disease outbreaks now for over a decade, Uruguayan meats have over 120 market access worldwide, Caputti said.
In the period analysed cattle slaughter by industry reached 2,155,000 head which means the cattle stock is recovering but industry is below its three million head capacity. In the coming 12 months the number can be expected to increase to 2.4 million.
In the last agricultural year Uruguay also exported 25,000 mutton and lamb, which ranks it only behind Australia and New Zealand globally. Likewise in the 12 months total meats sales reached US$1.87 billion, of which US$1.47 billion beef, US$80 million lamb and mutton and US$272 million pork, broilers and offal.
Uruguay has a cattle stock of 12 million head and is the only country in the world in which each animal has an identification and is registered meaning any beef cut can be traced to the farm it was born, the farmer and a record all the way through to the butcher''s or supermarket.
Furthermore the average per capita beef consumption in Uruguay reached 60 kilogrammes, to which must be added 19 kilogrammes of chicken and less of pork, according to INAC Domestic Market manager Gabriel Costas.
Higher slaughter and beef output is forecast to boost Uruguay''s beef exports in 2014, with shipments expected to reach 400,000t cwt. Uruguay''s calf crop is expected to reach its highest ever level in 2014 at three million calves. "An expected higher-than-normal weaning ratio is the result of very good weather in 2013 and 2014 and to good returns, which encouraged cattlemen to continue to improve herd management," said the USDA.