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2017 - National Meat Institute of Uruguay (INAC)
Suppling country outlook:
URUGUAY
National Meat Institute (INAC)
Meat Importers Council of America – MICA
25th October, 2017
San Diego, CA
2017 - National Meat Institute of Uruguay (INAC)
Presentation Outline
1- The US beef market for Uruguay
2- Uruguay´s production and market situation, 2018 projection
2017 - National Meat Institute of Uruguay (INAC)
1. The US beef market for Uruguay
3
2017 - National Meat Institute of Uruguay (INAC)
Uruguay is a small player in US beef imports (<5%)
1. The US beef market for Uruguay
4% to 5% of US chilled and frozen
beef imports in the last years…. 4
Source: INAC (Global Markets Monitor). Data for
0201 and 0202
Th
ou
sand
C
WT
US chilled and frozen beef imports by country
2017 – National Meat Institute of Uruguay - INAC
The United States:
a key market for
Uruguay´s beef industry
2017 - National Meat Institute of Uruguay (INAC)
1. The US beef market for Uruguay
2003 to 2017: the US has been the largest market
-1 in 4 tons exported from UY went to the US (25%)
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
50,000
100,000
150,000
200,000
250,000
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(est)
US
Sha
re o
fto
tal U
Y v
olu
me
expo
rts
Ton
s (
ship
ped
weig
ht)
Uruguay´s refrigerated beef exports to the US and share of total exports
Tons % UY exports
Source: INAC
2017 - National Meat Institute of Uruguay (INAC)
Current situation
1. The US beef market for Uruguay
- 20 beef plants and 6 ovine plants approved for the USA
- USD 250 mm annual exported FOB value (average, 3 years).
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Mill
ion
s U
SD
UY: total beef exports FOB value to US
Source: INAC
2017 - National Meat Institute of Uruguay (INAC)
- Chilled exports: 6% volume 2016.
- Growing value of imported beef.
- Certification programs:
- Organic
- Never ever, ABF, grass fed, certified natural, breed claims, others.
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0
2,000
4,000
6,000
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Usd
/to
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UY: frozen beef value exported to US
1. The US beef market for Uruguay
Source: INAC
2017 – National Meat Institute of Uruguay - INAC
The TRQ is the largest
limitation for Uruguay
9
2017 - National Meat Institute of Uruguay (INAC)
The TRQ is the largest limitation for Uruguay
1. The US beef market for Uruguay
- Uruguay has 20.000 tons of the US beef TRQ, only 2,9% of the total.
- In the last 14 years, 2/3 of the volume shipped to US was OUT of quota.
- 2014 to 2016:
- Uruguay exported 77% volume above the quota level (15 k tons/year)
- USD 63 mm paid in import duties, almost 10% of the CIF value.
- Average import tax of USD 590 / ton exported (520 to 770 USD/ton)
- Above the quota level, other markets are more price competitive.
10
2017 - National Meat Institute of Uruguay (INAC)
2. Uruguay´s beef production,
market situation and 2018
outlook
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• Stabilized production: 600 thousand CWT
• Ratio exports / domestic: 70/30
• Exports 2018: 420 thousand CWT (slightly down -6%- from 2017 levels)
2. Uruguay´s beef production situation
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98
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Tho
usand Ton
s (
CW
T)
Uruguay´s beef production
Export DomesticSource: INAC
2017 - National Meat Institute of Uruguay (INAC)
Cattle Slaughter near 2,2 mm heads (average 10 yrs)
2. Uruguay´s production perspective
13
1,600
1,800
2,000
2,200
2,400
2,600
2,800
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est
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pro
j
Tho
usand h
ea
ds
Uruguay cattle slaughter, 2005 -2018
Source: INAC
2017 - National Meat Institute of Uruguay (INAC)
Positive medium term
production perspective
14
Highest breeding cow
herd in the history
2017 - National Meat Institute of Uruguay (INAC)
Increasing production, but also quality
2. Uruguay´s production projection
15
+ 32+ 28
+ Angus breed in the stock
+ Weight
+ Grain finished steers and heifers
Source: INAC
2017 - National Meat Institute of Uruguay (INAC)
2017 and 2018 highlights market
and industry highlights
- Industry acquisitions (NH and Minerva)
- UY allowed to export bone-in lamb to the US
- UE-MERCOSUR, FTA
16
2018
- Japan market access, expected first semester 2018
2017
• No significant changes are expected for 2018 in terms of the export destinations
• China will continue with a firm import dynamic and top destination for UY beef
• The US and UE as other key markets.
• US: similar levels, 35 thousand tons for chilled and frozen beef.
2. Export markets 2018
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Tho
usand Ton
s (
Ship
ped
weig
ht)
Uruguay beef exports 2003 -2017
ASIA MERCOSUR NAFTA UE OthersSource: INAC
2017 - National Meat Institute of Uruguay (INAC)18
Thank you!
