Argentina’s beef industry has been thriving, with exports reaching impressive numbers in recent months. While China continues to be the primary market for Argentine beef, there are some challenges in terms of pricing. Let’s delve into the details:
- Export Statistics: From January to October of this year, Argentina exported a total of 641,900 tons of beef, marking a 14.3% increase from the same period in 2023. This surge in exports translated into revenue of US$ 2.5 billion, up by 7.2% compared to the previous year.
- Chinese Market Dominance: China stands out as the largest buyer of Argentine beef, absorbing a whopping 78% of the total exports in the first ten months of 2024. This dominance is significant, considering other notable buyers like Israel, the United States, Germany, the Netherlands, Mexico, and Italy, each accounting for smaller shares ranging from 6.7% to 1%.
- Price Challenges: Despite China’s stronghold on the market, the prices paid by Chinese importers for Argentine beef have been decreasing. In October 2024, the average price per ton was recorded at US$ 3,360, a substantial decline from the peak price of US$ 5,900 per ton seen in May 2022.
While these numbers indicate a thriving beef industry in Argentina, the issue of declining prices in the Chinese market raises concerns for exporters. It is essential for stakeholders to strategize and explore avenues to maintain profitability in the face of fluctuating prices and market dynamics. As the industry continues to evolve, adapting to changing conditions is crucial for long-term sustainability and growth.
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