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.