China pays up to 25% more for Argentine beef

Alejandro Rollán

Shanghai's Sial Fair has become the world's largest sample for the domestic refrigeration industry.

Because of the composition of Argentine meat shipments, China is the main market for domestically produced food: in the first quarter of the year, two kilograms exported were destined for the ports of the Asian giant.

Because of this importance, a group of 25 national refrigerators is participating in the exhibition, which runs from May 14th to 16th.

In the past year, China has purchased about 190,000 tonnes of meat from Argentina and by 2019, the forecast has also improved.

"It will be a good year, with volume growth of 10%, due to the limitations of our offer and price improvement," said Daniel Urcia, China's Executive Director to China. Industriales de la Carne de Córdoba (Afic) and director of the Institute for the Promotion of Argentine Beef (IPCVA).

With more than 50 refrigerators present at the Shanghai Food Fair – SIAL -. This year, we will legislate to export 70% of our stocks in China !!!! We must double our existence of rodeos to supply this market in a minimal way !!! pic.twitter.com/H9v4jGC06D

– Diego Ramiro Guelar (@diegoguelar) May 14, 2019

During the last two editions of SIAL, the IPCVA has developed an Argentinean beef marketing campaign, with public road signs and tastings, which have helped to position the national product.

# Shanghai The Argentine meat again present in China sial
– 3,400 exhibitors – 120,000 negotiators.
– 2017-> 86 000 – 2018 -> 180 377 tonnes exported
– 2012 1 million USD -> 2018 -> 786 million USD for exportshttps: //t.co/bRTNdMD8PA#DefensoresDelCambio pic.twitter.com/XMPhBOngNQ

– MSR (@MSRepublica) May 15, 2019

"In the last five years we have been to the show and the demand and values ​​have grown, we are very excited about what's coming," said Mariano Grimaldi, president of Refrigerators, Rio Segundo.

Best prices

Although growth in volume is limited by supply, the equation could still improve on the price side. "The values ​​are 25% higher than last year," said Jorge Torelli, vice president of the IPCVA.

Substitute meats

The trade war with the United States, due to tariffs, and the decline in domestic production of pigs, due to African swine fever, have generated in China a shortage of animal protein supplies that they seek to offset by exports.

According to Torelli, at the end of the year, China will have a deficit on its total meat market of 10 million tons, which we will try to replace with meat cuts first and foremost pork, then chicken and finally beef, already rare. . "That is why attention will be paid to prices," said the representative of the refrigeration industry.