October 17, 2013

Uruguay's Jan-Aug beef export to China soar 83.4% on-year

The rapid growth in sales of Uruguayan beef to China is expected to continue over the next few years due to a number of significant competitive advantages and an aggressive promotional strategy.

This is according to the executive director of Uruguay's intensive cattle producers' association, AUPCIN.

Export of Uruguayan beef to China in January-August of 2013 leapt 83.4% on the same period last year to a free on board (FOB) value of US$175 million, according to figures released recently by Uruguay's national meat institute INAC, which said that China is now the biggest market for Uruguayan beef in terms of volume.

INAC said that when measured in tonnes, China accounted for 24.1% of Uruguay's beef exports in the first eight months of 2013, followed by NAFTA countries (the USA, Canada and Mexico), with 19.7%, and the EU with 15.2%. However, in terms of value, the EU remains the biggest market, with 24.6%, compared with China's 18.6%, and NAFTA's 16.2%.

AUPCIN executive director Alvaro Ferrés said that Uruguayan beef is popular in China because it is a natural product produced without antibodies or growth promoters, and producers use a tight traceability system. He noted that all heads of cattle in Uruguay are registered with an individual identification code, so any beef cut can be traced from the supermarket or butcher back to the farm where it was reared.

Ferrés said, "INAC is doing a very good job promoting Uruguayan beef in China. It is appearing at lots of trade fairs and visiting restaurants, explaining to customers how we produce our meat. I think the proportion of Uruguayan beef going to China will continue to grow, and it will prove to be a very good market for us."

INAC statistics noted that the share of Uruguayan beef exports by volume to the EU fell from 20% to 15% in 2012-13 compared to the previous year, although the EU accounted for 25% of sales by value as it purchases expensive and prime cuts. INAC said that by volume, the US and Canada accounted for 20% of exports in 2012-13, with Russia taking 10%, down from 30% the previous year, Israel 10%, and south American Mercosur trade zone and associate countries around 15%. Uruguay is the world's sixth biggest exporter of beef.