Uruguayan exporters of meat must re-think their strategy for Europe
Uruguayan beef exporters must adapt their strategy for Europe, as the market is restricting the consumption of meat products, said Lautaro Perez Rocha, INAC Marketing Manager, in an interview for El Observador newspaper.
"The market in Europe is going in a direction opposite to what we perceive happens in the rest of the world. All this establishes a difficult situation for Uruguayan companies, leads us to redouble efforts and think strategies to defend the commercial and brand position,", he said blaming concerns related to sustainability and in particular with the focus on what has It happened in South America.
At the same time, prices of meat coming from Brazil and Argentina are more competitive than the ones presented by Uruguayan exporters and that is going to be a big challenge, as long as competitors' prices in the region are down by 40% compared to Uruguayan beef prices. Last but not least, non-meat proteins such as plant-based products and even insects are gaining field in several markets in the EU.
Fortunately, exports to China have increased by 31% this year and are expected to grow furthermore in 2020, according to INAC. "There is a redirection of placements to Asia, particularly to China. Hopefully, we will have more exports to China in 2020 and less to Europe and the United States. We also see that Asian countries, and I mean Japan, Korea, China and those in Southeast Asia, are lowering their import tariffs and import protection. It is a strong signal, it is an invitation to produce more and better. The opportunity is huge. For many years Asia will be the new commercial hub for meat exports from Uruguay and that is here to stay for decades. Keep in mind that China is already the main importer of beef in the world, this year will exceed $ 7 billion,", Mr. Perez Rocha added.
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