October 8, 2004

US Remains Biggest Market For Uruguay Beef

According to data released by the National Meat Institute of Uruguay (INAC), from January 1 to August 31, Uruguay's beef exports totaled 196,014 MT. During August, Uruguay's beef exports totaled 19,501 MT. Specifically, Uruguay exported 11,947 MT of beef to the U.S. This was 61.3 percent of the total.

Through August 31, the US remained the biggest market for Uruguayan beef with 101,631 MT for the year-to-date, or 51.8 percent of the total. To date, Uruguay has shipped nearly 80 percent of its beef to the US above the TRQ, paying the over-quota tariff rate of 26.4 percent.

According to the USDA Economic Research Service (ERS), Uruguay had 1.2 million more cattle available on January 1, 2004 compared with a year ago and about 2.0 million above historical levels. Uruguay is not shipping large amounts of beef to Canada and must compete in Europe with Argentine and Brazilian beef.

Finally, Uruguay devalued its currency by 80 percent in June 2002, making its beef much cheaper in terms of US dollars. For the year-to-date, Uruguay's beef exports to the EU reached 23,749 MT. This was 12.1 percent of the total exports for the year.

Exports to Canada totaled 14,667 MT, which is 7.5 percent of the total. Uruguay's year-to-date beef exports to Argentina equaled 12,991 MT. During August, Uruguay's cattle slaughter totaled 145,834 head. This was the lowest monthly total since November 2003.

For the year-to-date, Uruguay's cattle slaughter was 20.2 percent greater than a year ago, amounting to 1,384,099 head.