March 14, 2006

Uruguay switches markets while Brazilian exports remain strong

The US has ceased to be Uruguay's favourite destination for beef exports, as less than half the country's beef exports went to the US in February, the first time this has happened in two years, according to the World Beef Report.

The US has been the major destination of Uruguayan beef over the past two years, accounting for 70 percent of Uruguay's beef exports in 2005.

The shift was caused by the ban on Argentinean and Brazilian beef, which increased demand for Uruguayan beef in alternative markets like Israel, Chile and Russia who were paying higher prices.

Uruguay exported 24,387 tonnes of beef in February, roughly the volume from the same period last year.

On the other hand, Brazilian exports were well up in January and February, despite FMD outbreaks and the resulting embargos imposed by key markets. Brazilian exports in February totalled 71,203 tonnes - 13.7 percent greater than February 2005.

Exports in January showed a 23 percent increase compared with 2005, with major increases to key frozen beef markets of Egypt (up 52 percent) and Russia (up 957 percent).