2018 - National Meat Institute of Uruguay (INAC)
Suppling country outlook:
URUGUAY
National Meat Institute (INAC)
Meat Importers Council of America – MICA
October, 2018
Miami
2018 - National Meat Institute of Uruguay (INAC)
Presentation Outline
1- The US beef market for Uruguay
2- Uruguay´s production and market situation, 2018 projection
2018 - National Meat Institute of Uruguay (INAC)
1. The US beef market for Uruguay
3
2018 - 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
200
400
600
800
1,000
1,200
1,400
1,600
2010 2011 2012 2013 2014 2015 2016 2017
OTHERS
BRAZIL
MEXICO
NEW ZEALAND
CANADA
AUSTRALIA
URUGUAY
2017 – National Meat Institute of Uruguay - INAC
The United States:
A key market for
Uruguay´s beef industry
2018 - National Meat Institute of Uruguay (INAC)
1. The US beef market for Uruguay
2003 to 2018: the US has been the largest market
22% tons exported from UY went to the US
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
50,000
100,000
150,000
200,000
250,000
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
(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
2018 - 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 233 mm annual exported FOB value (average, 3 years).
7
0
100
200
300
400
500
600
200
3
200
6
200
9
201
2
201
5
201
8 (e
st.)
Mill
ion
s U
SD
UY: total beef exports FOB value to US
Source: INAC
2018 - National Meat Institute of Uruguay (INAC)
- Chilled exports: 7% volume 2017.
- Growing value of imported beef.
- Certification programs:
- Organic
- Never ever, ABF, grass fed, certified natural, breed claims, others.
8
0
2,000
4,000
6,000
200
3
200
6
200
9
201
2
201
5
201
8(e
st.)
Usd
/to
n
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
2018 - 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 15 years, 2/3 of the volume shipped to US was OUT of quota.
- For the period 2015 to 2017:
- Uruguay exported 77% volume above the quota level.
- USD 72 mm paid in import duties, 11% of the CIF value.
- Average import tax of USD 680 / ton exported.
- Above the quota level, other markets are more price competitive.
10
2018 - National Meat Institute of Uruguay (INAC)
2. Uruguay´s beef production,
market situation and 2018
outlook
11
• 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
12
0
100
200
300
400
500
600
700
199
8
200
0
200
2
2004
200
6
200
8
201
0
2012
201
4
201
6
201
8 (e
st.)
Tho
usand Ton
s (
CW
T)
Uruguay´s beef production
Export DomesticSource: INAC
2018 - 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
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
(est.)
Tho
usand h
ea
ds
Uruguay cattle slaughter, 2005 -2018
Source: INAC
2018 - National Meat Institute of Uruguay (INAC)
Positive medium term
production perspective
14
Highest breeding cow
herd in the history
2018 - National Meat Institute of Uruguay (INAC)
Increasing production, but also quality
2. Uruguay´s production projection
15
+ Angus breed in the stock
+ Weight
+ Grain finished steers and heifers
Source: INAC
Steer Cow
Angus Hereford Others Dairy
2018 - National Meat Institute of Uruguay (INAC)
2017 and 2018 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
17
0
50
100
150
200
250
300
350
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8 (e
st.)
Tho
usand Ton
s (
Ship
ped
weig
ht)
Uruguay beef exports 2003 -2018
ASIA MERCOSUR NAFTA UE OthersSource: INAC
2018 - National Meat Institute of Uruguay (INAC)18
Thank you!