August 5, 2010

Higher Uruguayan beef demand seen in Russia

More Russians are tucking into Uruguayan beef as the credit crunch continues to affect demand for the meat in traditional West European markets and other countries struggling with economic recovery.

Official statistics showed that Russia became the Latin American nation's main customer for beef in the first half of 2010 and the trend appears set to continue through the rest of the year.

Uruguay traders said they expected the Russian position to hold-unless it is overtaken by China. From January through July, Uruguayan processors exported 74,535 tonnes of beef to Russia-a big jump from 46,594 tonnes during the same period a year ago. The trade figure represents a 60% increase in sales in spite of the softer prices offered by Russian buyers.

In the first half of 2009, the Russian Federation accounted for 22.1% of Uruguay's overseas sales of meat. Now its share stands at 31.7% and is likely to increase

Russia has left behind the EU, the previous largest importer of the Uruguayan meat, which imported 45,758 tonnes of beef in the first six months of 2010. The Russian consumption helped compensate Uruguayan exporters for the fall in demand and prices from the EU.

Luckily for Uruguay and in an indication of Central and North American consumer habits, beef purchases by the US, Canada and Mexico remained virtually unchanged at 32,314 tonnes, from 32,407 tonnes during the same period in 2009.

Critics of the Uruguay market trends said Russian imports offered a temporary relief to the local livestock industry, which was still facing business failures. Reports suggested Uruguayans are paying up to four times the prices they paid for beef five years ago.

According to official data of the Uruguayan authorities, Russia occupies 31.7% of meat market in this Latin American country.