October 20, 2008

Uruguay's beef exports have declined sharply in the past few weeks due to seasonal low supplies, record high cattle prices, and a slowdown in the global beef trade as a result of the credit crisis.

Foreign demand have cooled while some meatpackers have reportedly halted activities as they concentrate their efforts to sell all products stored in cold rooms, according to the World Beef Report.

In addition, average export prices have slumped 33 percent from a record of US$4,668 per tonne cwt in the third week of September to only US$3,115 per tonne cwt, breaking a general upward price trend that has been around since 2002.

Exporters said shipments are ceased as overseas importers analyse their strategies in the current financial environment. In the past few weeks, EU buyers have cut price quotes by 30 percent, Chilean prices plunged 40 percent, while Russia issued no quotes as the market tries to clear high beef stocks.