Beef export from the Mercosur countries will increase
A report published by the Argentinean Stock Exchange of Rosario (BCR) and the Department of Mercado Ganadero (Rosgan) says that global beef production will reach 58 million tons. This is 1% more than in 2021. China is expected to increase its beef imports. This could be great news for the MERCOSUR countries, as all four of them play an important role in the global beef market.
A ban of certain beef cuts export, implemented by the Argentine government until the end of 2023, could limit the industry's productivity during this period. 2021 has been an unusual year for the Brazilian and Argentinean beef markets. These two countries, traditional producers of animal protein, saw a decrease in exports, especially in the last months of the year.
Overall, compared to 2020, Brazil's beef sales fell by 9.92%, while Argentina's exports fell by 13.84%.
The decline in Brazil's exports can be attributed to China's beef embargo. Since September 2021, Brazil has voluntarily suspended exports to China following the detection of two cases of Creutzfeldt–Jakob disease at the country. As a result, another member of MERCOSUR, Uruguay, has benefited greatly from the current situation, and the supply of beef from this country has increased by 35%. A similar increase in beef exports was reported by Paraguay, for which 2021 was a record year. China's beef imports are expected to exceed 2 million tons this year.
Source: meatinfo