Report 1621

From Monday through Friday, a new edition of Gulfood —one of the most globally significant food fairs— is taking place. As usual, participation by various stakeholders in the meat market is strong, according to several sources attending the event. While the predominance of MENA countries is to be expected, the presence of Chinese and Russian buyers is particularly noteworthy, one trader said.

There is no end (for now) to the surge in European chilled beef prices, which have been reaching new highs since early October. With limited supply from Argentina, by the end of last week most exporters from that country had managed to close rump & loin Hilton shipments at US$/t 15,500 FOB.

A Paraguayan exporter reported making Gulfood deals for a chilled forequarter (60%) and hindquarter (40%) mix destined for Algeria at US$/t 5,900 CFR, liver for Egypt at US$/t 1,900, tenderloins for Kuwait at US$/t 9,700, and forequarter at US$/t 5,100.

Import price references for the US market did not change significantly over the past week, but “a certain buzz” is developing over the possibility that the Trump administration may impose higher tariffs on beef suppliers who run a trade deficit with the United States.

A regional trader observed that several Russian buyers at Gulfood showed interest in mutton from Uruguay, though their price offers were far from what exporters were seeking.

Beef consumption in Chile “remains flat,” according to an importer, which has kept import prices for March shipments relatively stable—around US$/t 6,050 for the full 19-cut set from Brazil, and around US$/t 6,250 for shipments from Paraguay.

After seven consecutive weeks of appreciation, the average steer price in Mercosur countries saw a slight downward correction. The main bearish factors were centered in Brazil and Paraguay. The WBR Mercosur Steer Index lost 2 cents, settling at US$ 3.86 per kilo carcass.

Brazil exported 99,849 tons of beef in the first two weeks of February at an average FOB value of US$4,948 per ton, according to data from the Secretariat of Foreign Trade (Secex).

Cattle slaughter in the state of Mato Grosso remained high in January, driven by an increased share of female animals. Imea reported that 614.62 thousand head of cattle were processed in January, nearly the same figure as in the first month of 2024.

President Luiz Inácio Lula da Silva said he will travel to Japan on the 27th of this month to try to open the Japanese market to Brazilian meat exports. “I will go to Japan on the 27th with the prospect of opening the Japanese market for Brazilian meat.

The cost of feeding beef cattle in feedlots fell in January. Expectations for a record harvest in 2024/25, the start of the grain harvest, and lower international references for feed grains eased finishing costs.

Brazilian consumers are willing to pay more for sustainable beef products, according to a thesis from the University of Florida authored by Brazilian journalist Shenara Pantaleão Ramadan.

The finished cattle price (boi gordo) fell across the major cattle-raising regions of Brazil this week. According to Scot Consulting’s benchmark prices, with 30-day payment terms and net of the Funrural tax, the average value in the main exporting states stands at R$/@ 301.8, down R$ 5.10 from last week and showing a cumulative drop of R$/@ 8.4 over the past three weeks.

The Indian group Allana, which was introduced by Minerva as the buyer of Establecimientos Colonia if the purchase of three Marfrig slaughterhouses by Minerva is approved, denied any relationship with the Saudi investment group Salic, which holds a large equity stake in Minerva itself.

The Turkish government announced in recent hours the authorization to import 30,000 pregnant Aberdeen Angus heifers from Uruguay. The shipment is expected to take place before August.

As anticipated, on Monday the court ordered the necessary creditors’ proceeding for Conexión Ganadera (CG), thereby removing its director, Pablo Carrasco, and all current officials from their positions.

The Casa Blanca (Fricasa) meatpacking plant in Paysandú has sent 350 workers on unemployment insurance. According to El Telégrafo of Paysandú, after learning that the plant was involved in the Conexión Ganadera case with a debt of US$25.5 million, producers and consignors drastically reduced the supply of cattle to the plant—cutting the slaughter rate from around 1,000 head per week to fewer than 200. According to the local paper, the company is not giving up and is speeding up the search for solutions to resume its usual slaughter pace.

The Directorate General of Livestock Services (DGSG) reported on Monday that, following Argentina’s notification of an avian influenza outbreak in Tres Isletas, Maipú Department, Chaco Province, and given its proximity to Uruguay’s northern border, “a state of health alert is declared throughout the national territory.”

The value generated by selling all the products from a Type Steer 2.0 after the industrial process reached US$1,607 per head in January—0.9% (+US$15) higher than its December value in US dollars and the highest figure since May 2023.

Timely rainfall in recent days, which reinforces expectations of favorable forage production in the final stretch of summer, combined with steady domestic demand seeking to supply a high-demanded international market, has injected dynamism and allowed for an improvement in slaughter cattle prices.

Although activity was lower than in the previous three weeks, cattle slaughter remained above 50,000 head for the fifth consecutive week. INAC reported that 51,243 cattle were sent to slaughterhouses in the week ending February 15, a 6% decrease from the previous week, though still 16% above the same week last year.

The sheep meat market is firm, with rising prices despite a reduction in the number of plants working with this species. Heavy lambs are trading at US$ 4.20–4.25 per kilo of carcass, and adults at US$ 3.45–3.55, provided their carcass weight is under 24 kilos.

A massive fire broke out on Monday afternoon at Frigorífico Gorina, one of the country’s leading beef exporters. According to media reports, the blaze began in the packaging area and spread rapidly.

Representatives from around twenty agricultural chambers and entities—including those in the meat sector—met yesterday at the Secretariat of Agriculture, Livestock, and Fisheries with officials from the Foreign Ministry and the Undersecretariat of Environment.

Export steer prices have moved up another notch, as tight supply coincides with stronger European demand for shipments arriving before Easter. British-breed crossbred steers climbed to between Ar$ 4,900 and 5,000 per kilo carcass weight, as did zebu-cross steers.

The National Animal Health and Quality Service (Senacsa) reported that South Korean auditors are in the country to begin an evaluation of Paraguay’s meat complex. The initial meeting of the on-site audit by South Korea’s Ministry of Food and Drug Safety (MFDS) took place last Tuesday, and visits will continue until February 20.

Prices for finished cattle weakened significantly over the past week. Initially, processors cut their list prices by about 10 cents, but by early this week some major plants were quoting prices 20 cents below last week’s levels, with..

Frigid temperatures crashed down into the plains with some snow and wind. This week’s focus will be retailers’ reaction to two weeks of dramatically reduced slaughter volumes. Live prices have fallen US$ 10 and the composite has matched the decline leaving processors in the same place for margins.

Compared to the last market test, US beef import prices were mostly firm to slightly higher, instances generally steady.

Germany is relaxing some of the restrictions imposed after a foot-and-mouth disease (FMD) case and believes the measures taken to contain the outbreak are working, Reuters reported, citing the Ministry of Agriculture.

Overall, 2024 was a strong year for the UK beef market. The UK produced 934,000 tons of beef and veal through the year, up nearly 4% from 2023. Combined with a 5% uplift in beef imports, this contributed to greater supply on the market, according to a recent market report from AHDB.

Numbers of cattle on feed across Australia have continued their two year surge, hitting 1.45 million head in the December quarter, latest survey data released by the Australian Lot Feeders Association and Meat & Livestock Australia shows, informed Beef Central.

On Wednesday, February 13, China authorized the import of meat from 21 meat-processing plants in various countries around the world, but none of them produce beef.

In January, imported beef stored in cold warehouses in China did not maintain the trend that prevailed during the second half of 2024.