At CIIE in Shanghai, Argentine exporters recorded $6,800 per ton for cow beef in 23 cuts and $8,000 for shank and forequarter, 30% more than a year ago. China accounts for close to 60% of the volume of their beef exports.
At the latest edition of the China International Import Expo (CIIE), held in Shanghai, Argentine beef exporters found commercial values that rank among the best historic records for some products. The fair featured the participation of the Instituto de Promoción de la Carne Vacuna Argentina (IPCVA) and 14 exporting companies, and the outcome confirmed China's strategic importance, accounting for approximately 60% of the volume and 40% of the value of Argentine beef exports.
The values negotiated during CIIE, always on a cost-and-freight basis, included references of $6,800 per ton for cow beef in 23 cuts and $8,000 for shank and forequarter. These prices are above those recorded in the previous weeks, historically high and 30% higher than a year ago.
Brazil, Argentina's main competitor, received a Chinese import quota of just 1.1 million tons, a volume significantly below the approximately 1.5 million tons sent to it last year. That limitation fuels Argentine exporters' expectations of a possible redistribution of demand, although caution still prevails among buyers.
Preparation for the Lunar New Year, one of the most important celebrations in the Chinese market, drives food demand and forces importers to bring purchases forward to guarantee availability during that period. In that context, the Asian giant continues to offer opportunities, especially for beef from grain-finished animals.
“We are seeing uncertainty in China regarding the beef that will come in from Brazil, but at the same time opportunities are emerging in the development of grain fed products,” explained Juan Manuel Beltrán, of Bustos y Beltrán, who took part in the fair for the first time as an approved plant. The businessman stressed that developing that segment requires attention to production, quality and labeling issues. “Quality beef in China is grain-fed. Not all the beef consumed there is grass-fed, what is called vaca flaca. Both markets exist, but grain clearly prevails, here, in China and worldwide,” he stated.
IPCVA president Georges Breitschmitt highlighted that China continues to evolve as a destination: “There are more and more inquiries about grain-finished animals. It is a market that keeps evolving and that surprises us more and more.” Along the same lines, Pablo Erbin, of the Gorina meatpacking plant, considered that the Brazilian developments generate speculation but do not change long-term prospects. “We believe China will be, as always, a market of very good value for some cuts and always refining and improving in terms of beef quality,” he held, adding: “Today they demand a lot of grain beef that they did not before, and they are increasingly specific and learn day by day. It is a very good market for Argentina.”
