Report 1627

Even though the flow of business deals has hit some bumps in the road, with some importers submitting bids at lower prices, closing prices from the region continue to trend upward.

A regional trader told World Beef Report (WBR) that Uruguay and Argentina “continue with upward prices,” although they acknowledged that “some importers are surprised by the levels reached.”

It was another week of firmness for rump & loin Hilton cuts, with no apparent ceiling so far. Import market sources indicated references of US$17,500/ton FOB for Hilton from Argentina and US$16,500 for Uruguay, in a context of limited supply. These are the highest prices since April 2022, three years ago. One trader suggested that Argentine slaughter is unlikely to improve before mid-May, when kosher teams are set to return to the region.

As has been the case for several weeks, trade flow with the United States remained at a standstill, influenced by Trump’s potential announcements and all the uncertainty surrounding the reciprocal tariffs on agricultural products that the president of the world’s largest economy was expected to unveil this Wednesday. At the Annual Meat Conference in Orlando, Florida, last week, some players in the US market speculated that Trump might exclude food items from the planned 25% tariff increase, somewhat contradicting his initial threats from a few weeks back. “I wouldn’t be surprised,” a broker noted.

Import prices in the Chilean market showed practically no change last week.

Deals were made last week for mutton carcasses from Uruguay to MENA countries at US$3,800/ton CFR, according to a regional trader.

The average value of the steer in Mercosur countries climbed for the fourth straight week. The WBR Mercosur Steer Index increased by 4 cents to US$3.91 per kilo carcass weight, accumulating a 13-cent rebound over four weeks.

Brazil now has a new market for beef. An agreement signed between the Brazilian and Vietnamese governments formalized the opening of Vietnam to imports of the product. According to the Brazilian Beef Exporters Association (ABIEC), they expect up to 300,000 metric tons of Brazilian beef to be exported to the Asian country.

The CEO of the Brazilian Beef Exporters Association (Abiec), Roberto Perosa, told Valor that Japanese technicians will travel to Brazil within a maximum of 60 days to inspect the sanitary conditions of beef production. This is the key step that allows the export of fresh beef to Japan. Brazil, the world leader in this segment, currently does not participate in that market, which imports US$4 billion a year.

JBS reported higher-than-expected earnings because strong demand for chicken and pork helped offset pressure on its U.S. beef business. The Brazilian company posted earnings before interest and taxes of R$10.8 billion (US$1.9 billion) in the fourth quarter, according to a statement released last week. This amount is more than double that of the previous year and 9.4% higher than the average estimate by analysts surveyed by Bloomberg.

A tighter supply and stronger buyer interest —driven by the start-of-month boost in domestic demand and higher export prices— pushed slaughter cattle prices upward this week. Based on data from consulting firm Scot, net of Funrural tax and with 30-day payment terms, the average price for fat male (boi gordo) in the main exporting states rose by R$8/@ to R$299.6/@, the highest level in six weeks, dating back to mid-February.

The focus of Uruguayan beef exports shifted rapidly. After nine years in which China dominated—often taking well over 50% of total shipments—the country’s share has plummeted drastically in recent months, while exports to the United States grow steadily.

The reduction of the 481 quota which Uruguay can access is not preventing a trend toward higher Uruguayan beef exports to European Union countries, both chilled and frozen. The decrease in domestic supply of this protein is having a greater impact, prompting sales outside the quotas or increased use of them.

Uruguayan sheep meat exports in the first quarter of the year experienced drastic changes in both volume and average value. The volume fell by 31% year on year, to 3,100 tons, while the average value rose by 44% to US$6,116 per ton. As a result, total revenue was nearly US$19 million in both years.

The market for slaughter cattle remains firm, with prices largely unchanged, especially for heavy, high-quality steers.

Supply remains ample, thanks to excellent forage availability; in most cases, producers are opting to sell at today’s high prices. Meanwhile, part of the demand is showing more caution following the departure of kosher teams, with Easter approaching in less than two weeks (which will reduce slaughter days), and shortly after that, the start of a new 481-quota window. Some plants are not active in purchasing grassfed special steers, focusing instead on heifers and feedlot cattle.

Cattle slaughter grew by more than 1,000 head and was the highest in six weeks. INAC reported that in the week ending March 29, 47,150 cattle were processed, 1,267 more than the previous week and significantly higher than the same week last year, which coincided with Easter.

The sheepmeat market is holding at the same price levels as the previous week. The few companies active with this species are offering the prices published by the Consignors’ Association for the week: US$4.31 per kilo for lambs, US$3.61 for wethers, and US$3.52 for fat ewes. For adults, these references apply to carcasses of up to 24 kg.

The president of the Argentine Federation of Regional Meat Processing Industries (FIFRA), Daniel Urcía, emphasized in a radio interview the contrast between the situation of cattle production and that of the meatpacking industry. “There are good prices today for almost all categories; looking to the future, it’s not the same to operate with 200% inflation as it is to move toward a more normal country: productive activity begins to yield returns rather than just financial activity.

The official decision two weeks ago to allow bone-in meat into Patagonia from north of the livestock health barrier —subsequently suspended for 90 days— continues to spark debate. Amid the uncertainty, Patagonian producers staged protests, and more than 30 rural associations submitted a letter to the national authorities of the Agriculture Secretariat and the SENASA health agency, requesting information about the measure and its impact on the regional economy.

Georges Breitschmitt, representative of the Confederación Intercooperativa Agropecuaria Limitada (Coninagro), will chair the Argentine Beef Promotion Institute (IPCVA) for the next two years, following the entity’s biennial leadership rotation. The vice presidency will remain in the hands of Mario Ravettino, head of the ABC exporters’ association.

Export steers held their prices, though top-end values fell by Ar$100 per kilo carcass weight. British-breed heavy steers are now quoted between Ar$5,000 and Ar$5,100 per kilo carcass weight, while zebu-cross steers are still between Ar$4,900 and Ar$5,100.

Senacsa reported that Paraguayan export plants slaughtered 163,566 cattle in March, producing 39,331 metric tons of beef. Although the number of processed animals was the lowest so far this year, it marked the fourth consecutive month with activity surpassing that of the same period last year.

Cattle prices for slaughter strengthened for the third consecutive week and hit their highest level so far this year, amid a spell of rains that prevented planned shipments from several ranches.

US beef sales to China fell sharply in March after the Chinese government allowed the registrations authorizing exports from hundreds of US processing plants to expire. The lack of renewal has undermined exporters and Chinese buyers’ confidence, who now avoid doing business with meat produced after that date due to uncertainty about customs clearance.

R-CALF USA sent a comprehensive letter (March 27, 2025) to Secretary of Commerce Howard Lutnick, urging a Section 232 investigation into the national security risks posed by cattle and beef imports under President Trump’s America First Trade Policy. This follows a previous request by R-CALF USA for a similar investigation into the impact of lamb and mutton imports on US national security, DRGNews.com reported.

Proposed fees for US ports with Chinese ships docking at them raises concerns for the US red meat industry. The US Trade Representative (USTR) office held hearings the week of March 26 on a proposal to impose a service fee for each US port call of a Chinese-operated ship, or a per-net-ton service fee applied on the ship’s carrying capacity.

US cattle feeding margins continued their sharp upward momentum as breakeven prices for current closeouts hover in the US$ 170 range against a negotiated cash steer price averaging US$/cwt 212 for the week ending March 22, according to The Sterling Marketing Beef Profit Tracker.

Todays is going to bring new definition to the tariff applications. Expected is the unexpected. Economic experts supporting Trump’s tariffs and budgets are now forecasting some of those measures may take the country into a recession. The indiscriminate spending of the past few years is not sustainable and bringing the budget back in line will be painful but necessary, The AG Center said.

Compared to the last market test, US beef import prices were mostly steady to weak on light demand. Trading was slow.

Martin Heydon, Ireland’s Minister of Agriculture and Marine, has presented the Food Vision 2030 Dashboard. One of the proposals is to transition part of dairy livestock production toward a meat-focused system. This initiative was introduced in March 2024, and the minister and committee received a joint presentation from the Department of Agriculture, Food and Marine, Teagasc, and the Irish Cattle Breeding Federation on ongoing implementation and outcomes of the plan.

The American Sheep Industry Association (ASI) will continue asking the Trump administration and legislators to include Australian and New Zealand lamb in the tariff plans for food imports.

According to a document from a Chinese operator who took part in Monday’s hearing —and which World Beef Report (WBR) had access to— there is a high likelihood that the Asian powerhouse will implement retaliatory measures to protect its domestic livestock industry. The public hearing on the investigation conducted by China’s Ministry of Commerce —aimed at assessing the impact of beef imports on China’s domestic cattle industry— was held this Monday in Beijing, with 38 speakers and 40 observers in attendance.

The president of Uruguay’s National Meat Institute (INAC), Gastón Scayola, appeared this Monday in China regarding the government’s investigation into the alleged negative impact that beef imports have had on local producers.

China’s livestock and poultry sector in 2024 showed ample supply despite a slowdown in production growth, said OIG+X in its annual report about imported meat. According to the National Bureau of Statistics (NBS), total meat production in China —including pork, beef, sheepmeat, and poultry— reached 96.63 million tons, up 0.2% year-on-year (YoY), an increase of 220 thousand tons.

One day after Vietnam opened its market to Brazilian beef, JBS signed a memorandum of understanding with the Vietnamese government to build processing units and logistics centers in the country. JBS will process beef, pork, and poultry there. The company announced last Saturday its intention to invest US$100 million in the construction of two factories, according to The AgriBiz.