TheBeefSite.com - news, features, articles and disease information for the beef industry

AHDB European Market Survey


18 June 2012

AHDB European Market Survey - 15 June 2012AHDB European Market Survey - 15 June 2012

South American export prices for chilled and frozen have fallen back since last autumn based on data from the Ministry of Agriculture, Livestock and Fisheries in Argentina.

AHDB

South American beef export prices falling back

South American export prices for chilled and frozen have fallen back since last autumn based on data from the Ministry of Agriculture, Livestock and Fisheries in Argentina. This has been mainly due to an easing in global demand for beef as a result of the uncertain economic environment which has also affected Australia, a major competitor to South American suppliers. This is despite the fact that supplies of South American beef remain tight with little change in production in the region and steady domestic demand. In the first quarter of 2012 combined exports of chilled and frozen beef from the four Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) were down seven per cent compared with a year earlier while the overall average price was one per cent lower. For countries such as Brazil and to lesser extent Uruguay, an easing back in their exchange rates against the dollar in recent months has also enabled exporters to reduce their prices. In contrast the Argentine real has strengthened.

In Brazil the average export price of chilled and frozen beef in January to March 2012 was unchanged on a year earlier at US$4,876 per tonne while volumes were down six per cent. Prices were down seven per cent compared with the August to November period when prices were at their peak as exporters found markets particularly difficult at the beginning of this year.

In Argentina shipments continue to be constrained by government restrictions on exports in order to prevent domestic beef price inflation, with year on year volumes declining by 22 per cent in the first quarter of 2012. The average export price was up five per cent compared with the first quarter of 2011, although by March 2012, at US$7,753 per tonne, it was down 22 per cent compared with the peak level of November 2011. Volume shipments to the EU under the Hilton Beef Quota have been lower than a year earlier due to delays in issuing licences by the Argentine authorities, which will have contributed to prices not being as high than might otherwise have been the case.

In the first quarter of 2012 Uruguayan export volumes were almost twice as high as those from Argentina. They were also up 11 per cent year on year in the first quarter of 2012. The average export price was up two per cent at US$5,710 per tonne but still down seven per cent compared with the peak level of last November.

Helped by the steady domestic demand, cattle prices have remained firm in Argentina with the steer price even moving up in recent months. The March 2012 steer price at Liniers market was up seven per cent year on year and eight per cent higher than in November 2011 in contrast to the decline in the export price. In Brazil the Rio Grande do Sul price for steers in March 2012 was down eight per cent on a year earlier, while in Uruguay it was three per cent lower.

DOWNLOAD REPORT:- Download this report here

Our Sponsors

Partners


Seasonal Picks

Animal Welfare in EPS - 5m Books