Argentine: Beef exports in the first half of the year were the highest since 1990
This volume represents an increase of 10% compared to the first half of 2023, while the improvement is around 18% compared to the average of the last five years in the same period.
While exports are increasing, production is decreasing by 10% year-on-year, after the production record of 2023, supported by the need to send animals to slaughter in a context of shortage of pastures and water caused by drought.
This combination of factors means that exports in the first half of this year account for 30.6% of total production. This figure is a record and is five percentage points above the average of the last five years in the same period, which is 25.6%.
A major explanatory factor behind this increase in beef exports is the great dynamism of demand from China, Argentine's main buyer at an international level (57% of the total exported).
According to the United States Department of Agriculture, the Asian giant's foreign beef purchases are expected to reach a record 3.9 million tons so far in 2024, which, if confirmed, would imply 323 thousand tons or +9% additional demand compared to the previous year.
Although beef exports grew by 10% in volume year-on-year, the value remained practically unchanged when measured in dollars due to falling prices.
In the first half of 2024, the country received around US$ 1,346 million in beef exports, only 0.1% above the previous year and in line with the average for the last five years.
This is the second highest figure after the record of US$ 1,676 million achieved in the first half of 2022.
The drop is entirely explained by a decrease in prices: in the first half of 2022 the average export price was around US$ 4,406 per tonne, while in the current year the average price fell to US$ 2,959/t, that is, a decrease of 33% in the last two years.
Despite this, the fundamentals for prices in the coming months appear promising, due to the strong international demand, which according to the USDA will lead to final beef stocks falling by 9.7% this year.
By 2025, private analysts expect prices to be supported by a reversal in the liquidation phase of the livestock cycle in important suppliers such as Brazil, the United States, Argentine and Uruguay.
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