August 10, 2004

Uruguay Recovers Beef Markets

After having achieved the re-opening of the Chinese market for Uruguayan beef and lamb, local authorities are holding similar negotiations with Korea and Japan.

"Cooked meats will be the first step and in the second stage boneless matured beef," indicated Mr. Recaredo Ugarte head of Uruguay's Livestock Services who recently visited the Far East.

"We're finishing the drafting of documents with Japan based on the current sanitary conditions in Uruguay. I'm optimistic that we'll soon be signing the agreement with Japan," said Mr. Ugarte.

Meanwhile, Seoul authorities in Korea requested "the volume of Uruguayan beef exports to non foot and mouth disease markets", such as Canada and United States, "where most our sales are now concentrated".

Japan and Korean were among the leading Far East markets for Uruguayan beef and lamb until the outbreak of FAM in 2001.

Since 2002, Uruguay has gradually recovered lost markets. And in the first half of 2004, the country exported 230,636 tons of beef valued at almost 400 million US dollars. The main clients of Uruguayan beef are United States and Canada absorbing 74% of exports, followed by the European Union 10%, Mercosur 6%, Israel 5% and other destinations 5%.

In 2003, Nafta countries represented 42%, EU 15%, Mercosur 14%, Israel 12%, Algiers 8% and others 9%.

For lamb and mutton, Uruguay exported 5,381 tons during the first six months of 2004, a 35% increase over the same period in 2003. European Union received 65% while Mercosur took 28% of export.

Since the reopening of the US market for Uruguayan beef, "exports increased over 20% and the price of live cattle 35%, which now stands at almost one US dollar per kilo", compared to 0,80 US cents in Argentina, said Roberto Vazquez Platero, president of the Uruguayan Meat Board.