Chilled beef market in Europe remains firm, with challenges for frozen product

The chilled beef export market to Europe has remained firm in recent days, with prices holding steady compared to last week. The dominant factor is the tight supply, which continues to place upward pressure on prices.

An Argentine exporter quoted a price range for rump & loin between US$/t 16,800 and 17,200, while two importers agreed that most deals were being closed between US$/t 17,000 and 17,200.

“The euro's appreciation helped push Argentine prices to US$ 17,000, but final customers are not willing to pay those prices,” said one importer, noting that this is putting pressure on profit margins.

In Uruguay, chilled beef prices are mostly in the range of US$/t 15,700–15,800, with US$/t 16,000 quoted for Angus-certified rump & loin.

The frozen beef market, however, is more difficult. Holders of GATT quotas — generally the larger importers — are not trading them, leaving those without quota access unable to import. One importer reported that the quota is being offered at €2.45 per kilo, which, when including the 20% duty applicable within that quota, is close to the full levy cost of 12.8% plus €3.034 per kilo, depending on the product’s price.