Report 1626

Import prices in China remained firm over the past week, though some importers “complain” about rising prices, said a regional broker to WBR. Others are agreeing to deals at prices that strengthen week by week. “Even though prices in China have improved, it’s still very difficult to close deals, either because of lower supply or because some importers won’t accept higher prices,” the broker noted.

Although some importers believe prices are approaching “a limit,” deals continue to close each week at higher levels. Last week, a European importer purchased Hilton rump & loin cuts from Argentina at US$/t 16,800 FOB and from Uruguay at US$/t 16,000 FOB. However, early this week another importer confirmed having paid US$/t 17,000 for the Argentine product, with some exporters now asking US$/t 17,200 FOB or more for new loads. One exporter reported sales at US$/t 17,500 FOB.

Over the past week, Uruguay sold mutton carcasses to MENA at US$/t 3,600 CFR.

A sea of speculation and few certainties. That is the current situation in the United States beef import market, following President Donald Trump’s announcement a few weeks ago that he would review agricultural import tariffs starting Tuesday, April 2, without providing further details. “No business,” “no changes from previous weeks,” and “nobody wants to take risks” were some of the reactions from different agents who supply the US market.

Chile’s imported beef market remained unchanged pricewise over the past week. One source quoted references of US$/t 5,800-5,900 CFR for the 19-cut selection from Brazil, while Paraguay was around US$/t 6,100-6,200 for May shipments.

Slaughter cattle prices increased for the third consecutive week. The WBR Mercosur Steer Index rose by 4 cents to US$3.87 per kilo (carcass), accumulating a 9-cent recovery over the past three weeks.

Prices climbed in all four countries in the region.

Cattle slaughter at federally inspected (SIF) plants—which are authorized for export—contracted by 6% month-on-month and 3% year-on-year, according to official data released by consultancy Agrifatto.

Minister of Agriculture and Livestock (Mapa) Carlos Fávaro projects that Brazil should have “a few dozen” additional beef packing plants authorized to export to China in 2025. The statement was made last week during a public hearing before the Senate Agriculture Committee, which invited the minister to present the ministry’s plans for the next two years.

Brazil exported 45,817 tons of beef in the third week of March at an average FOB value of US$4,912 per ton, according to data released by the Foreign Trade Secretariat (Secex). The daily export pace, at 9,163 tons, was the lowest since the last week of January.

Minerva Foods posted a loss of R$1.567 billion (around US$274 million) in the fourth quarter of 2024 (4Q24), compared to a negative net result of R$19.8 million in 4Q23.

Minerva Foods reported a loss of R$1.567 billion (about US$275 million) in the fourth quarter of 2024. Following the announcement, the company’s shares closed up 8.23% on Thursday, at R$6.05. During trading, the stock reached a high of 11.99% gains, according to Money Times.

Goldman Sachs emphasized that Minerva recorded a strong quarter, surpassing the Bloomberg consensus by 21% in terms of EBITDA, with Brazil once again the main driver of the positive surprise.

With favorable market conditions for South American beef exports and expectations regarding returns from the assets acquired from Marfrig, Minerva aims to generate between R$1 billion and R$2 billion in free cash this year (about US$425 million). “This will be used to reduce debt,” said CFO and Investor Relations Officer Edison Ticle in a conference call with analysts last Thursday. He highlighted that the company has repurchased bonds, which helped lower both gross and net debt.

Marfrig Global Foods announced the acquisition of feedlot and farming units formerly operated by MFG Agropecuária Ltda., a company controlled by Marfrig’s principal shareholders. The transaction, valued at R$48 million, took place through a Marfrig subsidiary and is part of the company’s strategic plan to ensure raw material supply and enhance efficiency at its industrial operations.

JBS will take over The Vegetarian Burger, a Dutch plant-based meat company belonging to Unilever. The acquisition was carried out through its subsidiary Vivera, according to Estadão. The deal’s value was not disclosed, and the agreement is expected to be finalized in September. Unilever, which opted to sell the business to streamline its portfolio, stated that The Vegetarian Burger has seen double-digit growth since its 2018 purchase.

The Brazilian government reported that during a visit by the Minister of Agriculture of Malaysia’s Sarawak State to Brazil, an International Health Certificate (CSI) model for poultry and beef exports was agreed upon.

The average price of fat male rose, ending the consecutive downward trend during seven weeks that began in the last week of January—a stretch in which average prices in the main exporting states had fallen 7%. This week, reference prices increased in several states, affecting both cattle destined for the domestic market and so-called “boi China,” animals under 30 months of age whose beef can be exported to the Chinese market.

After two setbacks—one in October and another in December 2024—Minerva once again requested authorization in February of this year to finalize the purchase of three additional plants in Uruguay. In remarks to AgFeed, Edison Ticle, Chief Financial Officer and Investor Relations Officer at Minerva Foods, expressed his confidence that the new transaction would be approved. The expectation is a response by July “in the worst-case scenario. We have submitted a new proposal because we are fairly certain it satisfies the Uruguayan authorities.

Uruguay completed its first export of live cattle to Azerbaijan, a market that was opened in 2016 but had not yet received any shipments. The transaction was carried out by the company Gadoville, which also included around 1,700 Holstein heifers and pregnant Aberdeen Angus heifers for Turkey.

At an event held at the Sociedad Elías Regules in Montevideo, the shipping and container company ONE presented new technology called “Container +,” which is already available in most of the company’s containers.

On March 19, Paraguay’s National Animal Health and Quality Service (Senacsa) announced in an official statement the opening of Israel’s market to Paraguayan sheep meat. It reported that the sanitary requirements had been agreed upon by both parties and that a Paraguayan establishment was authorized to export this product.

Even though some plants are trying to buy at slightly lower prices than last week —especially those working with kosher crews leaving in the next few days— the slaughter cattle market remains very firm. Prices are running a notch above last week’s levels, particularly for steers.

Cattle slaughter saw little change. In the week ending March 22, according to information from INAC, 45,883 cattle were slaughtered, virtually unchanged from the previous week and less than 2% above the same week last year.

The supply of slaughter sheep is as low as the demand—concentrated in only two processing plants—so the market remains firm with stable prices. One market operator mentioned that certain plants, which process sheep sporadically, are considering re-entering the market.

Argentine beef exports reached 50,080 tons (product weight) in February, according to INDEC. This volume is 7.2% higher than the previous month but 27.5% lower than in February 2024.

By adding the 13,129 metric tons of bone-in beef and beef bones from deboning that arrived in February to the 19,246 metric tons of frozen boneless beef, China ended up as Argentina’s main beef export destination, accounting for 65% of total shipments.

Falling prices in the Chinese market redirected part of the frozen boneless beef exports to other destinations in early 2025. With 3,211 metric tons purchased in February, the United States became the second-largest market for this product. Over the two-month period, US purchases totaled 6,012 metric tons, up 222% compared to the same period in 2024.

Bovine offal exports totaled 8,161 metric tons in February and 16,316 in the two-month period, a 20% increase over the same period in 2024. Meanwhile, bovine preparations reached 2,179 metric tons in February and 4,580 metric tons over the two-month period, a 3% year-on-year rise.

Export steer prices rose by Ar$100 per kilo in carcass terms, driven by tight supplies. Better-quality British breed steers are now quoted between Ar$5,000 and Ar$5,200 per kilo carcass weight, while Zebu-cross animals range from Ar$4,900 to Ar$5,100 per kilo.

Cattle prices remained firm, and processors had to agree to higher levels to secure animals for slaughter last week.

The USDA released their March Cattle on Feed Report, which shows the number of cattle and calves on feed for the slaughter market in the U.S. for feedlots with capacity of 1,000 or more head was 11.58 million head on March 1, 2025, two percent below March 1, 2024.

The packers have few choices available except to shrink the slaughter volume. The open question is whether they can shrink it enough to change their leverage — first with the retailers then second the cattle owners. The sell off in futures prices on Friday anticipated this move but only time will inform market participants of the outcome, The AG Center said.

Compared to the last market test, US beef import prices were generally steady, instances firm to higher. Trading was slow. Imported supplies from Australia and New Zealand remained light.

Turkey’s local currency, as well as its stocks and government bonds, plummeted after authorities detained the main political rival of President Recep Tayyip Erdogan on alleged corruption charges—an action the opposition called “an attempted coup.”

Slovakia has confirmed its first cases of foot-and-mouth disease in more than 50 years, as announced on Friday the 21st by Agriculture Minister Richard Takáč to media outlets including the Denník N news portal. Outbreaks of the disease were detected at three properties in the south of the country, near the border with Hungary.

Most suppliers of imported beef reduced their shipments to the Chinese market during the first two months of 2025 compared to the same period last year. As a result, overall imports dropped by 11% year-on-year to 468,465 metric tons. However, two origins ran counter to this trend: Australia and the United States.

Average swine prices in China during 2024 were higher than in 2023, while production costs were lower, enabling higher profits across the swine breeding industry, said the USDA GAIN report about pork projections in China. Some swine producers started to expand swine production by restocking more sows. However, the expansion was slower than USDA estimated in the last annual report.

According to data from the Bureau of Animal Industry (BAI), in January the Philippines imported 138,000 tons of meat, 48,000 tons more than in January 2024.

Local pork production remains insufficient, which creates the need for imports, according to the Meat Importers and Traders Association (MITA). As a result, pork imports grew by 65%, reaching 70,449 tons.