Report 1648

It was not an easy week for closing export deals from Mercosur with China. A Brazilian trader told World Beef Report (WBR) that the market was “slower” than usual due to the large volume of beef either in transit to China or being produced for that destination.

A Paraguayan exporter told WBR that the prices passed on by Taiwan importers were lower than the last deals closed with that market.

Prices for Hilton chilled cuts strengthened again last week. In Argentina’s case, several plants were more focused on slaughter for the 481-quota during the week. In addition, the availability of certified grassfed steers for the EU remains low, while the upcoming exit of kosher slaughter (see Israel) will further reduce pressure to slaughter this category.

Trade with the U.S. slowed last week due to a resolution adopted by U.S. Customs on goods in transit. A regional trader told WBR that a U.S. Customs and Border Protection (CBP) resolution—on what is considered maritime transshipment—brought a “cloud of uncertainty” over operations.

Wholesale beef trade in Chile is not flowing as many operators had expected ahead of the supply peak for the September national holidays. This has led to a stagnation in business and importers aiming to pay less for new loads.

Kosher slaughter in the region is entering its final stage before the recess for the Jewish New Year celebrations on September 22. Import market sources told WBR that there are two weeks of activity left before the traditional annual break. Some crews are scheduled to conduct their last slaughter on September 9, while others will continue until September 12.

The average price of slaughter cattle in Mercosur moved upward for the third consecutive week. The WBR Mercosur Steer Index rose 4 cents to US$ 4.10 per kilo carcass weight, accumulating a recovery of 24 cents over three weeks.

Brazil exported more than 15,000 tons of beef per day last week at an average value about US$ 180 per ton below the peak of the previous week.

The price of finished males could reach R$/@ 400 by the end of 2026, which would represent a significant rise of around 30% compared to the little over R$/@ 300 currently paid for cattle in São Paulo. The projection was made by analyst Felipe Fabbri, from Scot Consultoria, on the program Mercado Pecuário.

After last week’s announcement of the approval of Brazilian bone-in beef in the Philippine market, it was now Indonesia’s turn. The country, also located in Southeast Asia (one of the regions with the greatest growth potential in animal protein consumption), authorized the export of bone-in beef, offal, and other prepared meat products, the Brazilian Ministry of Agriculture (MAPA) announced on Tuesday.

The long-awaited merger between Marfrig Global Foods and BRF took a step forward last week. The majority of the Administrative Council for Economic Defense (Cade) board members voted in favor of the operation without restrictions, under which Marfrig will fully incorporate BRF’s shares, forming MBRF, one of the largest global animal protein companies.

Despite being in the period of the month with the lowest domestic beef consumption, the slaughter cattle market remains firm, with a moderately positive weekly balance. The average price of the finished male in Brazil’s main cattle-producing states rose R$ 3.2 to R$/@ 297.9, based on state-level data from consultancy Scot, free of the Funrural tax and with 30-day payment terms.

At the close of this WBR edition, neither Marfrig nor Minerva had announced a possible extension of the deadline set by the parties until this Thursday, August 28, to finalize the sale of three slaughterhouses in Uruguay (Inaler-La Caballada and Colonia). The Commission for the Promotion and Defense of Competition (Coprodec), a decentralized body under the Ministry of Economy and Finance (MEF), has until October 13 to issue its ruling on the transaction.

Whether in feedlots or with some degree of feed supplementation, this year will see significant growth in the number of grainfed cattle in Uruguay.

The supply of slaughter cattle is minimal, with sales much higher than expected in previous months, combined with ideal weather for pasture growth, which allows suppliers to hold back offers, knowing that prices are rising and that delaying sales may bring further price gains.

Most of the production for the European 481-quota, beef from grainfed cattle, had already been completed the previous week, so in the week ending August 23 there was a predictable drop in the number of animals processed, especially in the case of steers and heifers.

The sheep slaughter market remains in high demand, with price references maintaining their gradual upward trend. Lambs are paid at US$ 5.00 per kilo carcass weight, and deals for hoggets were closed at US$ 4.95.

Argentine exports of chilled and frozen beef totaled 62,203 tons (product weight) in July, 1.1% lower than the previous month but 9.7% higher year-on-year. July was the second consecutive month with an annual increase in volume, after six months of decline. In June 2025 shipments reached the highest volume since November 2024.

In terms of value, the US$ 346.9 million invoiced in July 2025 represented a 5.5% month-on-month growth and a 51.7% annual increase. The average price in July 2025 was US$ 5,577 per ton, 6.6% higher than in June and 38.2% above July 2024, when it was US$ 4,035 per ton. At the same time, these were the highest values since August 2022, a year of record figures following the start of the Russian invasion of Ukraine.

From January to July 2025, beef exports totaled 376,250 tons (product weight), for about US$ 1.943 billion. This figure represents 13% less in volume than in the same period of 2024, and an 18% increase in value, thanks to a 35% rise in the average price, to US$ 5,165 per ton.

Exports to China, by far the main destination for Argentine beef, fell in July compared to the previous month, but were the second highest since November 2024. They totaled around 15,000 tons of bone-in beef and bones (for US$ 32.2 million), and 29,600 tons of frozen boneless beef (for US$ 147.8 million), making up 71.8% of Argentina’s total exports.

Sales to the US market totaled 2,595 tons in July, for about US$ 23 million. Although chilled beef exports totaled 756 tons for US$ 8.4 million, the highest performance of the year except for February, frozen beef reached only 1,839 tons, the lowest volume of the year, for US$ 14.6 million, virtually unchanged from June.

Exports of offal and beef preparations reached around 9,300 tons in July 2025, worth US$ 20.6 million. “The average export price of these products stood slightly above US$ 2,200 per ton, with peaks above US$ 3,760 for tongues,” said chamber ABC.

Although Argentina preventively suspended poultry exports due to an outbreak of influenza in poultry in a town in Buenos Aires province, it will still be able to sell to destinations that accounted for around 60% of shipments in this category in 2024, which totaled US$ 258 million, according to La Nación citing sources from the Agriculture Secretariat.

Prices of export cattle recorded another increase this week, bringing nominal gains for the highest-quality steers to 14% over the past two months.

The president of the National Animal Quality and Health Service (Senacsa), José Carlos Martin, informed the United States about the progress of the program to phase out vaccination against foot-and-mouth disease, as well as other direct livestock policies such as the implementation of animal identification and traceability.

Slaughter cattle prices reached new highs of the year in Paraguay last week. The reference for grassfed males rose 10 cents to a floor of US$ 4.40 per kilo carcass weight and US$ 4.10 for fat cows.

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.9 million head on Aug. 1, 2025. The inventory was 2% below Aug. 1, 2024, USDA NASS reported on Friday.

Jerome H. Powell said the “balance of risks” across the economy had started to shift, raising the odds the central bank lowers borrowing costs at its next meeting in September, Reuters said.

Packers will be buying this week for next week’s holiday shortened week. Meat supplies will remain in short supply. Very little has been available to add color to the increase in tariffs on Brazilian beef — a major source of US imported beef. Sometimes sourced beef from South American seems to be easy to change the origin country and keep the pipeline open, The AG Center report said.

Compared to the prior market test, US beef import prices were not fully established.

The European Union plans to give “preferential access” to its market to certain U.S. agricultural products such as dairy, pork, fruits and vegetables, nuts, and other agricultural goods not considered sensitive for the European economy.

Beef prices in the United Kingdom have risen sharply since 2020, driven by reduced cattle supply and rising production costs, said the Agriculture and Horticulture Development Board (AHDB).

The British Meat Processors Association (BMPA) has written to Defra Minister Daniel Zeichner to raise urgent concerns about the harmful impact of recent changes to the UK immigration visa system on the meat processing and manufacturing sector.

The Max Rubner Institute (MRI) published the first results of a representative online survey for the National Nutrition Monitoring. More than 3,000 people aged 18 to 80 were surveyed online about their eating and consumption habits between September and November 2024.

Cattle numbers on feed in Australia continue to surge to record highs, now within sight of 1.6 million head based on results from the June quarterly feedlot survey, informed Beef Central.

Grainfed cattle turnoff also hit a new high, with 894,178 head processed last quarter, which drove record grainfed production and export volumes. More cattle are being placed into longer-fed 200-300 programs, contributing to a significant lift in quarterly grainfed beef output.

The Australian Bureau of Statistics (ABS) has released livestock slaughter and production data for the June quarter, closing FY2024–25. Numbers highlight a new record for Australian beef production, while lamb and mutton throughput continued their historic highs – all proving overall red meat supply strength.

Chinese beef imports fell 6% year-on-year to July, but this moderate decline masks significant differences among supplying countries. Australia and Brazil are gaining ground, while the other main suppliers are falling.

Of the 250,291 tons of beef imported by China in July, 132,504 tons (53%) came from Brazil. This was not only the highest monthly volume from Brazil so far this year but also its largest market share.

China is finding it difficult to replace the near absence of U.S. offal supplies. Uruguay is the dominant supplier, with 1,201 tons out of the 2,592 tons imported in July (46% of the total), although imports from Uruguay fell 14% so far this year and total imports declined 13%.

It has been two months since the Indonesian Government announced the official removal of quotas on live cattle imports.

Despite the significance of that announcement from one of Indonesia’s most senior ministers, uncertainty remains over what the change means in practice for Australia’s cattle trade.