China to Acquire 70% of Argentina’s Beef Exports Amid U.S. Supply Decline
China is positioned to purchase 70% of Argentina’s beef exports, including live cattle, following Argentina’s lift on a 52-year prohibition. President Javier Milei’s recent policy changes aim to enhance competition in the meat sector and stimulate economic growth. In 2024, Argentina’s beef exports surged, with China as the largest buyer, as the U.S. faces declining cattle inventories and rising prices.
Recent developments indicate that China will acquire 70% of Argentina’s beef exports, including live cattle, amid declining U.S. inventories. This shift follows Argentine President Javier Milei’s announcement, allowing ranchers to export live cattle for slaughter, a significant policy change ending a 52-year export ban. The Argentine agriculture secretariat emphasized that this move aims to foster greater competition within the meat sector and aligns with Milei’s deregulation efforts to stimulate economic growth in the country.
In a 2024 report, it was noted that Argentina successfully exported more than 935,000 metric tons of beef, marking the highest volume since 1924. China stands as the prime buyer, purchasing nearly 70% of this beef, while other significant markets include the European Union, Israel, and the United States. In comparison, U.S. beef exports similarly remain competitive despite fluctuating domestic supply and prices.
The USDA reported that as of January 1, 2024, the U.S. cattle inventory has declined by 2% from the previous year, contributing to increased retail beef prices that average $5.55 per pound. With Argentina’s retail beef prices markedly lower, ranging from $2.19 to $3.11 per pound, the discrepancy highlights the economic challenges U.S. farmers face due to reduced herd sizes and rising operating costs.
Furthermore, the partnership between Argentina and China may reshape global beef trade dynamics, especially as the United States grapples with its declining cattle populations. Industry analysts expect that the robust demand for Argentine beef in the U.S. will persist, providing additional opportunities for Argentina within the international market. The implications of this shift in the beef trade are profound and may impact agricultural policies and pricing structures globally.
In summary, China is set to dominate Argentina’s beef export market, which has recently witnessed significant changes due to new export policies. This development comes against the backdrop of shrinking U.S. cattle inventories, leading to higher domestic prices for beef. The competitive pricing of Argentine beef presents a potential shift in global trade dynamics, which may influence future agricultural strategies in both Argentina and the United States.
Original Source: www.newsbreak.com
