Report 1620

China’s return to the market after the New Year festivities is perceived differently among various operators. Although the orders received in the region so far do not show an increase in the prices offered by importers, there has been greater buying interest in China’s trading circles since the start of this week.

Taiwanese importers were active last week, according to a Paraguayan exporter.

Prices for Hilton rump & loin increased sharply last week, driven by limited Argentine supply and a significant rise in export steer prices.

The U.S. market had somewhat larger offerings compared to recent weeks, according to a regional trader, who noted a “significant supply” of Brazilian 90 CL blocks at US$4,900–5,000 CFR outside quota, while 85 CL is around US$4,650. In Argentina, some plants are asking US$5,200 FOB for 90 CL.

Chile’s import market remains “flat,” mainly due to liquidity constraints across distribution and retail chains. According to an importer, deals for Brazil’s 19 cuts are closing at US$6,000–6,100 CFR, and at US$6,200–6,300 from Paraguay for March shipments.

Imports from Uruguay to Brazil remain steady, with purchases of chuck and shoulder clod at US$4,500 CFR and outside at US$5,300, according to a trader.

A Paraguayan exporter said Kuwait was active with orders for tenderloin, booking sales through March. Meanwhile, Egypt was offering US$1,900 CFR for liver and US$1,500 for heart. Uruguayan sources reported sales of liver to Egypt at US$1,500–1,600 FOB.

The average price of slaughter cattle in the region continued its upward trend for the seventh week in a row. The WBR Mercosur Steer Index climbed 2 cents to US$3.88 per kilo carcass weight. You’d have to go back to early September 2022 —nearly two and a half years ago— to find a higher value.

In January, Brazil exported 180.5 thousand tons of beef at an average FOB value of US$/t 5,029, the Foreign Trade Secretariat (Secex) reported. The volume fell for the third consecutive month and was 90 thousand tons lower than the record set in October 2024.

Brazil’s beef exports to China in January totaled 91,180 tons, nearly 23 thousand tons less than in December and the lowest monthly volume since March 2024, 10 months ago. The average shipment value reached US$/t 4,923, slightly below December’s US$/t 4,932.

Brazil’s fresh beef sales to European Union (EU) countries got off to a strong start in 2025. A total of 7,451 tons was shipped, nearly double December’s volume and 110% above January 2024.

Brazilian Angus beef exports grew 9.2% last year, reaching 3.1 thousand tons, according to the Brazilian Angus and Ultrablack Association.

In the fourth quarter of 2024, cattle slaughter rose by 3.5% compared to the same period in 2023, reaching a record high for that time of year with 9.48 million head processed at plants under some form of sanitary inspection, according to preliminary results from the Quarterly Livestock Surveys released by the Brazilian Institute of Geography and Statistics (Ibge).

Cattle slaughter volume rose in January 2025, with a significant increase in the share of female animals. According to the Federal Inspection Service (SIF), the total number of slaughtered cattle rose by almost 2% year-on-year. However, the most striking figure was the 10% rise in female slaughter.

Upload Ventures, a global venture capital firm, has just announced the entry of Minerva Foods into its growth fund. Minerva will become the fund’s second-largest investor, after TIM Brasil, which anchors the fund. The addition of Minerva Foods —Brazil’s leading beef exporter— to the Upload Growth Fund follows the participation of other strategic Brazilian and U.S. institutional investors.

Finished cattle (boi gordo) prices in Brazil’s main cattle-producing states trended moderately downward over the past week, though indications suggest this trend could level off in the near term. According to Scot Consultoria’s references, the average price for male for slaughter stood at R$306.9 per arroba, with 30-day payment terms, excluding the Funrural tax.

Yesterday evening, Minerva and Marfrig each released public statements regarding a new request by Minerva for authorization to purchase three Marfrig meatpacking plants in Uruguay: La Caballada in Salto, Inaler in San José, and Establecimientos Colonia in Colonia.

The formal opening of the Israeli market to Uruguay’s live cattle exports is imminent, following recent exchanges between authorities of both countries to finalize the health certificate. This was conveyed by the director general of Livestock Services at the Ministry of Livestock, Agriculture, and Fisheries (MGAP), Diego De Freitas, speaking with Radio Carve.

Today, the Ministry of Labor is scheduled to receive the decision of the meatpacking chambers regarding the proposal presented this Monday at the state agency by the Foica labor union.

Within the framework of the latest edition of Agro en Punta, there were two presentations related to the sheep sector. The first, titled Cordero Uruguaio da Boutique de Carnes do Mundo, was led by INAC’s marketing manager, Josefina Valenti, and the SUL’s technology transfer coordinator, Marcos García Pintos. The second, ¿Recuperación coyuntural o estructural? Claves para el futuro del rubro ovino, featured Eduardo Urgal (director of Frigorífico San Jacinto), private consultant Jorge Bonino, Diego Cybulka (Peterson Certification), and Nicolás Sapelli (commercial director of Chargeurs Luxury Fibers).

The market for slaughter-ready cattle continues to show characteristics similar to those of previous weeks, but with less disparity and with greater chances of achieving higher prices than those seen in the last two months.

Cattle slaughter remains very high. In the week ending February 8, 54,385 head were processed, a 2% increase week-on-week and 4% year-on-year. Over the past three weeks, during peak production for the EU Quota 481, an average of 54 thousand head per week have been slaughtered.

The closure of Somicar at the end of last year and Bamidal’s suspension of sheep slaughter last week have further concentrated demand for sheep in the domestic market. In an already relatively narrow field of buyers, losing two significant participants reduces placement opportunities.

In the first month of 2025, 1.142 million cattle were slaughtered, a drop of 8.1% compared to the previous month and 2.0% below January 2024, which itself had already shown a 2.6% decline from the first month of 2023.

According to estimates from the ABC chamber —whose member packing plants reportedly accounted for 35.1% of total slaughter in the first month of the year— meat production in January stood at around..

“This year will see a significant decrease in supply, by about 200,000 tons, roughly 5–7% below what was slaughtered in 2023 and 2024, which were two years of high slaughter and declining cattle inventories,” said cattle analyst Víctor Tonelli.

Export steer prices received another boost, driven by a shortage that combines both temporary and longer-term factors. British breed steers moved up to Ar$4,700–4,900 per kilo (carcass weight), and zebu-cross steers to Ar$4,600–4,700.

Paraguay has completed its first shipment of kosher frozen beef to the United States. According to the National Animal Health and Quality Service (Senacsa), this initial shipment consisted of 24 tons of beef sent by the Frigomerc plant, marking the successful outcome of a joint effort by the public and private sectors.

Prices for slaughter-ready cattle in Paraguay remain firm, with listed rates of US$3.70/kg carcass weight for standard males and US$3.50 for cows. An intermediary noted that some plants are opening unscheduled slaughter days on Saturdays and even Sundays.

Last week, the National Chamber of Exporters of Bolivia (Caneb) warned that the government’s temporary suspension of beef exports is causing the industry to lose half a million dollars per day. “The Caneb is on alert; we share the concern affecting primarily the ranchers in eastern Bolivia.

December beef export value climbed 5% from 2023 despite a slight decrease in volume as unit export values were record high. December beef and by-product exports totaled 110,171 mt, up 1.5% from a year ago, while value climbed 4% to $897.6 million – the highest since July. For the full year, beef and by-product exports were 1.29 million mt, down 0.5% year-over-year, while value increased 5% to $10.45 billion, according to year-end data released by USDA and compiled by the US Meat Export Federation (USMEF).

JBS will invest US$ 200 million in two of its U.S. beef plants to increase operational efficiency, with the potential to boost production capacity in the future, the company announced. The investment will go toward facilities in Cactus, Texas, and Greeley, Colorado.

JBS has agreed to pay US$ 83.5 million to settle antitrust allegations that it conspired with other meat companies (Tyson Foods, Cargill, and National Beef) to restrict beef supplies in the U.S. market, thereby artificially inflating prices. Ranchers and other plaintiffs disclosed the proposed settlement with the Brazilian company and its U.S. units in a federal court in Minnesota. The settlement must be approved by a judge.

U.S. meat company Tyson Foods reported net income of US$ 359 million, or US$ 1.01 per share, for the first quarter of fiscal 2025. The result exceeded the net income recorded in the same period of the previous fiscal year, when it stood at US$ 107 million (US$ 0.30 per share). Adjusted earnings rose to US$ 1.14 per share from US$ 0.69 a year earlier.

Fed cattle show lists reflect two different conditions. All regions posted larger show lists. This indicated an added incentive by producers to pull cattle forward to capture the unusually large positive basis.

Compared to the last market test, US beef import prices were mostly firm to slightly higher.

The FAO Food Price Index, a benchmark of global food commodity prices, declined in January, averaging 124.9 points for the month—1.6% lower than December, according to the United Nations Food and Agriculture Organization (FAO) on Friday.

January is typically a month of reduced beef shipments to China because the product does not arrive in time for Chinese New Year festivities, which represent a peak demand period.

Within the framework of Agro en Punta, Tardáguila Agromercados held a talk on Thursday the 6th titled “The Role of Mercosur in the Future of Livestock”, featuring insights from three renowned panelists and producers from the region: Álvaro Ferrés (Uruguay), Fausto Brighenti (Argentina), and Gedeao Pereira (Brazil).