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URUGUAY Beef EXPORTS TO RUSSIA increases US Price

PORKER

Well-known member
URUGUAY EXPORTS TO RUSSIA BOOMING
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URUGUAY/RUSSIA: A shift of Uruguayan beef to the Russian market has boosted beef prices in the United States.
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Uruguayan exports of frozen boneless beef to Russia have grown substantially this year and has contributed significantly to the reduced supply of imported beef in the U.S. market.

According to Meat and Livestock Australia (MLA), with Uruguay -- one of Australia’s main competitors in the U.S. manufacturing-beef market -- shifting to the Russian market, it has helped support the imported price for beef in the United States this year. The U.S. share of Uruguayan frozen boneless beef exports reached just 26 percent in June -- compared with 79 percent in June last year.

MLA said the main reason for the redistribution of Uruguayan beef exports to Russia has been the lack of imports from Russia’s major suppliers -- Brazil (due to foot and mouth disease-related partial trade embargos) and the self-imposed beef export ban in Argentina.

The attractive prices offered to Russia – due to tight supplies -- and the 26.4 percent out-of-quota tariff in the United States -- which the majority of Uruguayan beef is subjected -- have been motivating Uruguay to export to this alternate destination.

According to the World Beef Report, Uruguayan frozen boneless beef exports in June were 17 percent greater than June last year. Beef shipments to the United States were down 40 percent this year to 7,085 metric tons – compared to last year, while exports to Russia had increased 12 fold to 13,602 metric tons, to be Uruguay’s main market for this product.
 

Jason

Well-known member
Yep less than 5000 metric tonnes has a hugh impact on the American market :roll:

Based on a 13 million metric tonnes consumption that represents less than 4 one hundredths of one percent. (.00038%)

If average fat prices were 85 cents that accounts for .03 cents a pound.

Yep hugh increase. :roll:
 

Brad S

Well-known member
This article illustrates the fungible nature of beef. If the Aussies are shipping beef to Japan, it ain't coming here. Were the US to regain that market, the displaced Aussie beef would likely end up in the US (perhaps at a lower price). This concept is what protectionists need to get their brain arround. The US can ban Canadian beef, but it won't disappear - it will compete elsewhere. Free trade allows the market to decide most competitive trade routes and better serve markets for more fun and profit for all.

Awhile back, Agman referanced "comparative advantage." At the risk of challenging SH's minion status, Agman perfectly lays out the truth for those with enough sense to absorb it.
 

Econ101

Well-known member
Brad S said:
This article illustrates the fungible nature of beef. If the Aussies are shipping beef to Japan, it ain't coming here. Were the US to regain that market, the displaced Aussie beef would likely end up in the US (perhaps at a lower price). This concept is what protectionists need to get their brain arround. The US can ban Canadian beef, but it won't disappear - it will compete elsewhere. Free trade allows the market to decide most competitive trade routes and better serve markets for more fun and profit for all.

Awhile back, Agman referanced "comparative advantage." At the risk of challenging SH's minion status, Agman perfectly lays out the truth for those with enough sense to absorb it.

Brad you have a few points here, but today we do not have free trade. Globalists want trade to be as fungible as possible, even if it means food safety takes a hit.
 

IL Rancher

Well-known member
If you want in part to see what can happen with meat being shipped other places you can look at the lamb market from a couple years or a year ago. The dollar slipped against the Euro and new zealand and Australia shipped more lamb to Europe insead of here and lamb (live animal) prices in the states went way up without a real increase in domestic demand. Now, things have balanced down to the point that USDA bought lamb roasts for one of the school lunch programs to help prop up prices... Smaller commoditiy as far as the US is concerned but it can show how shifting international trade can impact a more local price.
 

Econ101

Well-known member
Differences in of currency valuation are based on monetary/fiscal and trade policies by individual countries. Globalization will arbitrage these differences with benefits going mostly to traders. The benefits are not necessarily good for the individual country's producers.
 
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