Pessimistic outlook for price improvement in China

The latest SIAL held in China “left much to be desired” and felt “bittersweet,” at least for Uruguay, according to Elizabeth Misa, director of Las Moras meat plant. The company noted a significant drop in attendance at the fair, which was reflected in weaker demand, mainly due to the recession China is facing. “Several clients mentioned rising unemployment, which has impacted consumption,” she said. Misa explained that expectations for exceptional sales were not met, and she expects the market to remain rather stagnant in the near future, with no significant changes in prices.

Meanwhile, Gonzalo Martínez, the company’s commercial manager, said Las Moras continues “seeking niche markets and differentiation” in the face of competition, particularly from Brazil, Australia and Argentina. Although Brazilian beef remains dominant in China, Las Moras is focusing on high value-added products. However, competitive challenges such as higher costs and logistics hurdles are slowing their progress. “It’s very hard for us to compete today in the commodity market,” Martínez warned.

When asked about China’s outlook for New Year purchases in the second half of the year, Misa said that “nothing extraordinary will happen with prices.” In her view, the market is more focused on maintaining stable and affordable prices, limiting expectations of any significant increase in export values.