- Title: Price tussle, coronavirus hammer Argentina's beef gravy train to China
- Date: 24th February 2020
- Summary: BUENOS AIRES, ARGENTINA (FEBRUARY 20, 2020) (REUTERS) (SOUNDBITE) (Spanish) HEAD OF THE ARGENTINE MEAT EXPORT CHAMBER, MARIO RAVETTINO, SAYING: "Coronavirus is undoubtedly aggravating a pre-existing situation that started the last month of last year with a large renegotiation of contracts and lowered demand from Chinese clients due to a series of events that made up this situation: a lack of support credit from the Chinese government to clients, a modification of the entry of merchandise into China, a renegotiation so big that in some cases the pre-established values (decreased) by 30-40%. Merchandise that was sold at USD $6,500-$7,000 a ton was renegotiated at USD $4,000-$4,300."
- Embargoed: 9th March 2020 03:12
- Keywords: Argentina China Coronavirus beef contracts exports meat renegotiation trade
- Location: BUENOS AIRES, LA PLATA, SAN FERNANDO & AZUL, ARGENTINA
- City: BUENOS AIRES, LA PLATA, SAN FERNANDO & AZUL, ARGENTINA
- Country: Argentina
- Topics: Commodities Markets,Economic Events
- Reuters ID: LVA004C1Z0KSN
- Aspect Ratio: 16:9
- Story Text: Argentine beef exports to its top buyer China fell almost a third in January due to a price dispute with Chinese importers and the effects of a coronavirus outbreak, the head of the South American country's meat export chamber told Reuters.
Soaring demand from China last year saw sales of Argentine frozen boneless beef double to 408,500 tonnes, worth around $2 billion, official data show. China bought three-quarters of Argentine beef exports, with buyers willing to pay a premium amid a shortage of pork.
"We estimate that the exports that we are sending to China in January with respect to the month of December will fall approximately 30%," said Mario Ravettino, head of the consortium of Argentine meat exporters, known by the initials ABC, which represents meat-packing plants responsible for preparing Argentina's famously succulent steaks for export.
The steep monthly fall is previously unreported, though the coronavirus outbreak has more broadly disrupted China meat imports, hitting global supply chains.
The estimated January figure - calculated at just shy of 31,500 tonnes - would be the lowest in nine months after sales ramped up throughout last year, with December sales of 44,878 tonnes. The month was however still up versus January 2019.
Ravettino said the Chinese government had at the end of last year limited credit to Chinese firms for Argentine meat imports and started buying beef from other countries with the aim of reducing contract prices, which prompted cancellation of orders.
The coronavirus, which broke out in China late last year and has so far caused the death of more than 2,200 people, presented serious logistical difficulties in Chinese ports, Ravettino said, aggravating the drop in shipments from Argentina.
He added some cargoes of Argentine beef have been diverted to other countries, including Singapore, and that some Argentine exporters are looking to increase sales to Russia.
(Production: Horacio Soria, Miguel LoBianco) - Copyright Holder: REUTERS
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