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2024 boding well for Latin American meat exports
Monday, March 25, 2024 - 18:19
Carne

Several countries in the region have announced the opening of new markets for beef and pork - especially the United States and China - with significant impact on the export of these animal proteins.

Important announcements have been made in the first quarter of 2024 that will allow beef and pork from several Latin American countries to be marketed in various countries, especially China and the United States.

Appetite for meat - both beef and pork - worldwide is unstoppable. According to the United States Department of Agriculture (USDA), global beef exports in 2023 reached almost 12.1 million tons, 6% more than in 2019. Brazil is the world's main exporter with 3 million tons, followed by Argentina (5th place), Uruguay (9th place) and Paraguay (10th place).

The most recent news came last week from Colombia, a country that is fine-tuning the final preparations to officially begin exporting beef to China, a market of more than 1.4 billion people. This, after the country managed to obtain approval of the export protocol as a reliable supplier of high-quality beef.

The process included meetings between the Colombian Agricultural Institute (ICA) and the Chinese Customs Administration (GACC) to review technical aspects related to epidemiological surveillance and disease control systems in Colombia.

The two plants authorized to export Colombian meat are located in Bucaramanga (Santander) and Ciénaga de Oro (Córdoba), and belong to Minerva Foods, a Brazilian food company also present in Argentina, Paraguay, Uruguay and Australia.

Exports are expected to begin after Easter.

For its part, Paraguay made history in the first days of January by making its first air shipment of beef to the United States, after the recent opening of that market to Paraguayan meat products. In 2023, the South American country, which is a major player in the meat industry in the continent, exported 445,000 tons, according to the USDA and the Foreign Agricultural Service (FAS).

“Paraguay conquers the United States with the best meat in the world. We celebrate the reopening of the US market for Paraguayan meat, the result of the union of efforts between the government of Paraguay, national producers and the meat processing industry,” celebrated the president of that country, Santiago Peña, in X.

The cargo departed from Silvio Pettirossi International Airport aboard an Avianca airline plane bound for Miami, Florida. The head of the National Directorate of Civil Aeronautics (Dinac), Nelson Mendoza, pointed out that what was sent in January was a “test” load with a “small amount” of meat, and highlighted his institution's intention to work so that the air terminal becomes “more efficient” in managing meat shipments.

Read more in: Paraguay makes its first air shipment of meat to the United States  

In Argentina, the Ministry of Agriculture, Livestock and Fisheries issued an official resolution establishing meat export quotas to countries in the Andean Community and Mercosur, detailing the distribution of the tonnage and the deadlines for entry.

The resolution provides for the distribution of 906,804 tons "corresponding to Quota II of the Economic Complementation Agreement (ACE) No. 72 (Mercosur-Colombia)." In addition, it establishes that the remaining 3,787 tons "become the Free Availability Fund."

In mid-January, Argentina, which in 2023 exported 795,000 tons of beef according to USDA and FAS, distributed 19,388.384 tons of the annual quota of 20,000 tons, with a preferential tariff assigned by the USDA for the commercial cycle 2024, as reported in the resolution published in the Official Gazette.

These tons include fresh, chilled and frozen boneless beef cuts, similar to those in the European Union's 'Hilton Quota'. In addition, 612 tons were reserved for internal use, with 48 companies participating in the registration process.

In 2023, this trade represented a global business of US$ 113 million. 

Bolivia is another country that has registered an increase in meat exports. In 2023 the Andean country exported more than 29,300 tons of beef, which represents an increase of 38% compared to 2022.

This increase was also reflected in the value of sales, with a total of US$ 136 million in 2023, compared to US$ 128.4 million in 2022, marking a 6% increase. China stood out as the main destination of exports, representing 87.3% in volume and 87% in value. Other destinations included Ecuador, Hong Kong, Peru, Congo, Brazil and Malaysia.

Bolivia plans to expand the meat export quota from 25,000 to 37,000 tons in 2024, since it has been guaranteed that domestic demand is fully covered. In addition, restrictions on the export of several products, including beef, were lifted to boost the country's sales abroad.

Last March 18 China authorized Panamanian company Ungasa to export pork starting in the last week of April. The destination of the protein will be the port of Tianjin, according to José Antonio Halphen, general manager of the company.

The Minister of Agricultural Development, Augusto Valderrama, considered that this authorization represents an opportunity to expand exports of other products in the future. In addition, he highlighted that this recognition of the quality of national production will drive an increase in local production.

Read more in: Panamanian company Ungasa obtains authorization to export pork to China

MEAT MADE IN THE USA?

A controversy recently emerged in the US meat industry after the approval of a new voluntary labeling standard for meat and poultry products that allows the use of the " Product of USA " seal only for products of American origin.

This recent regulation is not only discriminatory but could be a point of objection by Mexico and Canada, under the mechanism of the T-MEC or the World Trade Organization (WTO). This is not the first time that the United States has had actions of this nature, since in 2009 it established a seal that required, among other measures, to separate calves born in Mexico and exported to the United States in the different stages they go through in the latter country.

Experts consider that the main objective seems to be political, in response to demands from ranchers in the midst of an electoral year, as surveys show that consumers are willing to pay more for products labeled as American.

Autores

AméricaEconomía.com