Decrease in meat exports to China affects Argentina, Brazil and Uruguay

A recent adjustment in China’s import policies has caused a notable drop in beef exports from Argentina, Brazil and Uruguay during the month of May, according to an analysis of the Rosario livestock market (Rosgan).

Despite a 10% increase in cumulative shipments from January to May compared to the previous year, the decline in sales to China has raised alarm among exporters. According to Rosgan’s report, the loss of market share in China is “particularly alarming.”

Brazil and Uruguay, two of the main competitors in the meat sector, are also facing the repercussions of this new Chinese strategy. The inclusion of new suppliers, such as Bolivia, has allowed China to diversify its purchasing portfolio, imposing significant challenges on traditional exporters. Argentine meatpackers, in particular, now face a scenario of uncertainty, characterized by intensified competition and pressure on profit margins. In addition to the lower prices offered by China, exporters must quickly adapt to a new trade dynamic that could reconfigure the export landscape in the coming months.

The report highlights that in May, China’s share of Argentine beef exports fell from 75% to 69% of total exports. This 15% decrease reflects a trend towards supplier diversification by the Asian giant, which is now also considering unusual options such as Bolivia.

Furthermore, the European Union (EU) is positioning itself as a relevant competitor, absorbing approximately 10% of Argentine exports, while the United States has increased its participation to 7.5%.

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In Brazil, the dynamic is similar. Despite pressure to maintain their position in the Chinese market, Brazilian exporters have diversified their operations towards Arab markets and other destinations. The share of China and Hong Kong in total Brazilian meat exports decreased from 53% to 49% from January to May this year, despite disruptions suffered last year due to trade restrictions.

Uruguay has also seen a significant shift in its beef exports to China. In the past year, market share in China has fallen from 60% to 40%, leading Uruguayan exporters to strategically shift their operations to the United States and other emerging markets.

This complex scenario in the international meat trade shows how China is redefining its trade relations with major South American exporters, creating new challenges and opportunities in the global market.