Beef and buffalo meat market in MERCOSUR

Earlier Report Observations

From 2018 to 2021, the beef market volume in MERCOSUR declined from 9.9 million tons to 8.8 million tons. This reduction coincided with a strong increase in exports, which grew by over 20% in volume during the same period. The main driver was high international demand, particularly from China, which accounted for nearly half of the bloc's beef shipments and redirected supply away from domestic consumption. Record global prices in 2021, fueled by sustained Chinese buying and favorable pasture conditions, further encouraged export orientation.

The market rebounded in 2022 and 2023, reaching 10.0 million tons by 2023. In 2022, historic droughts followed by floods across the region led to accelerated herd liquidation, including young females, boosting slaughter volumes and meat supply. Despite some production drops in parts of MERCOSUR, Argentina increased its exports due to higher slaughter rates. In 2023, new export market openings, such as Brazil's authorization of additional beef plants for Indonesia, and the recovery of domestic consumption in Brazil after five years of decline, supported further market expansion.

Production beef and buffalo meat in MERCOSUR

In kind, 2017-2020, K t

Top producers of beef and buffalo meat, 2017-2020

World map of production of beef and buffalo meat, 2017-2020

Beef and buffalo meat production in MERCOSUR saw a two-year increase before declining. In 2020, production reached 12 019 K t, showing a modest 3.2% decrease from the previous year. Over the 2017-2020 period, production grew by 3.2%, with an average annual growth rate of 1.0%. The highest production level was recorded in 2019 at 12 417 K t, while the largest annual increase occurred in 2018 at 4.2%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following a two-year upward trend, the value of beef and buffalo meat production in MERCOSUR declined. In 2020, production was valued at 53 145 M $ US, representing an 8.3% year-over-year decrease. The peak value was achieved in 2019 at 57 937 M $ US, which also saw the largest annual increase of 7.0%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports beef and buffalo meat from MERCOSUR

Exports in kind, K t

MERCOSUR's beef and buffalo meat export volumes increased for the third consecutive year. In 2020, exports totaled 2 900 K t, marking a moderate 8.9% rise from 2019. Between 2017 and 2020, exports grew by 46.3%, equivalent to an annualized growth rate of 13.5%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, China, Hong Kong, and Chile were the primary destinations for beef and buffalo meat exports in volume terms. China accounted for 38.8% of exports, Hong Kong for 9.9%, and Chile for 8.8%. Together, these three markets represented 57.5% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, M $ US

The value of beef and buffalo meat exports from MERCOSUR rose for the third year in a row. In 2020, exports reached 12 824 M $ US, showing a moderate 3.2% increase compared to the previous year. Over the 2017-2020 period, export values grew by 42.2%, translating to an annualized rate of 12.5%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, M $ US

During 2017-2020, China, Chile, and Hong Kong were the key markets for beef and buffalo meat exports in value terms. China represented 39.1% of export value, Chile 8.9%, and Hong Kong 8.3%. Collectively, these three destinations accounted for 56.4% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports beef and buffalo meat to MERCOSUR

Imports in kind, K t

The import market for beef and buffalo meat in MERCOSUR showed an unstable trend over the period. Imports reached their lowest point in 2020 at 22 K t, down 47.4% from 2019. The peak was recorded in 2018 at 53 K t, which also saw the largest annual increase of 89.4%. The difference between the 2018 peak and 2020 low was 2.4 times.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

From 2017 to 2020, Australia and the United States were the main sources of beef and buffalo meat imports in volume terms, together accounting for 3.0% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, M $ US

The value of beef and buffalo meat imports into MERCOSUR increased for the third consecutive year. In 2020, imports were recorded at 382 M $ US, up 1.4% from 2019. Between 2017 and 2020, import values grew by 28.9%, equivalent to an annualized growth rate of 8.8%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, M $ US

In the 2017-2020 period, Australia and the United States emerged as the primary suppliers of beef and buffalo meat to MERCOSUR in value terms, together representing 4.8% of total imports.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020