The evolution of the sheep meat market in Latin America
One of the most relevant data in the current context is that, despite the recent decrease in the export price, the ton of exported sheep meat has maintained an average higher than that of 2023, reaching US$ 4,814 per ton, according to preliminary data provided by the National Meat Institute (INAC) of Uruguay. This figure represents a decrease compared to the previous week, where the price was US$ 5,264, but still reflects an upward trend in the annual average. Indeed, the average for the last 30 days has risen to US$ 4,363 per ton, marking the third consecutive month with prices higher than those recorded in the previous year.
The global sheep meat market is strongly influenced by various factors, both internal and external. Variations in the export price are a reflection of multiple dynamics, from supply and demand in international markets to political and economic decisions in producing countries. In this context, demand from countries such as China, Brazil and Middle Eastern nations plays a key role in determining the direction of exports.
China has historically been one of the most important destinations for Latin American sheep meat, but 2024 has presented significant challenges. According to INAC data, the turnover for sheep meat exports to China has fallen by more than 70% compared to 2023, which has considerably affected the total volume exported. While in 2023, around 12,000 tons were exported to this destination, in 2024 exports have dropped to just 3,500 tons, representing a reduction of more than 60%. This drop can be attributed to several factors, including a decrease in demand in the Chinese market due to the economic slowdown and global trade tensions that have affected the country's domestic economy.
Despite the drop in exports to China, the sheep meat market has found new horizons in other regions. Brazil, as one of the main consumers and producers of meat in Latin America, has shown a steady growth in demand for sheep meat. In November 2024, business with Brazil started strongly, shipping volumes 21% to 23% higher than the previous year. This positive trend is also observed in the Middle East market, where demand for sheep meat remains robust, especially in countries such as Saudi Arabia and the United Arab Emirates, which have shown an increase in their purchases compared to last year.
The fluctuation in sheep meat export prices is also closely linked to the global economic situation. Despite trade tensions, protectionist policies in certain countries and global economic instability, sheep meat prices have managed to remain above the values recorded in 2023. The annual average for 2024 has exceeded US$ 3,880 per tonne, compared to US$ 3,874 in the same period of 2023, reflecting a small but significant increase in prices. This increase can be attributed to the recovery of certain markets, as well as favourable weather conditions in some producing countries, which have allowed a constant supply of high-quality sheep meat to be maintained.
While 2024 has presented certain challenges, preliminary data and current trends suggest that the Latin American sheep meat market remains competitive and has growth potential in the medium and long term. Projections for the coming years indicate that, although export volumes to China could remain low, exports to alternative markets, such as Brazil and the Middle East, will continue to expand. In fact, the increase in business with these destinations could largely offset the loss of volume to China.
One of the main objectives for sheep meat producers in Latin America is to diversify their export markets. While China remains a key player in the export chain, other markets such as Brazil, the Middle East and some African countries are showing increasing interest in sheep meat. The key will be to strengthen trade relations and establish free trade agreements or bilateral treaties that facilitate access to these markets.
As sheep meat markets continue to evolve, Latin American producers must focus on innovation and continuous improvement of their production processes. This includes the use of advanced technology in meat production and processing, as well as the adoption of more sustainable and efficient practices in resource management. Improving meat quality, product traceability and compliance with international regulations will be critical to maintaining and increasing competitiveness in global markets.
Climate change also presents a significant challenge for sheep meat production in Latin America. Variations in climatic conditions, such as prolonged droughts or excessive rainfall, can affect livestock quality and pasture production, which in turn influences meat supply. Producers will need to adapt to these changes by implementing sustainable management strategies and diversifying their supply sources.
Despite the challenges, sheep meat exports from Latin America continue to be an important source of income for producing countries.
The sheep meat market in Latin America is constantly evolving, adapting to changes in global markets and facing internal and external challenges. While the drop in exports to China has temporarily affected volumes and turnover, growth in other markets and rising export prices offer a more optimistic outlook for the future. Market diversification, innovation in production processes and adaptation to climate change will be key to ensuring the sustainability and success of the sector in the coming years.
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