Amid high demand for beef in the USA and China, prices for beef cattle breeds in export markets rose in November - December, likely spurring the activity of Ukrainian exporters, reports Georgiy Kukhaleyshvili, analyst of the Association of Milk Producers of Ukraine.
According to preliminary data from the State Statistics Service of Ukraine (SSSU), in December 2024, Ukraine exported 4 thousand tons of live cattle, which is 68% more compared to November 2024 and 165% more compared to December 2023. Revenue from the supplied animals amounted to 8.61 million USD, increasing by 41% compared to November 2024 and growing by 277% compared to December last year. In 2024, Ukraine exported 18.12 thousand tons of live cattle (+3%) amounting to 35.46 million USD (+22%).
In December 2024, Ukrainian exporters supplied 1 ton of fresh or chilled beef to foreign markets, amounting to 11 thousand USD. The natural volume of exports increased by 64% compared to November of this year but decreased by 97% compared to December last year. Export revenue increased by 37% compared to November of this year but decreased by 90% compared to December 2023. In 2024, Ukraine exported 889 tons (+71%) of chilled red meat amounting to 5.59 million USD (+83%).
The natural volume of frozen beef exports in December amounted to 1.8 thousand tons, which is 11% less compared to November 2024 and 0.4% less compared to December last year. Monetary revenue from the supplied meat amounted to 6.59 million USD, which is 26% less compared to November 2024 and 15% less compared to December 2023. In 2024, Ukraine exported 18.55 thousand tons of frozen beef (-14%) amounting to 73.36 million USD (-16%).
Georgiy Kukhaleyshvili suggests that the increase in cattle exports from Ukraine in December may be related to the rise in livestock prices in export markets. In the second half of November, Brenny Hunt, Executive Director of the Canadian consulting company Canfax, reported that cattle prices had risen by 45-65% compared to five years ago. She believes that the driver of beef demand is the growth of the population and the rise in the middle class worldwide. According to Agriland.ie, prices for beef cattle breeds continued to rise at the beginning of December, impacting the prices of all types of livestock, as farmers returned to the markets to buy cattle with high purchasing power.
As reported by Agriland.ie, three weeks before Christmas, the profitability of the beef market exceeded record levels, and confidence in trade remained high among both processors and beef producers. Ellen Goddard, an economist at the University of Alberta, suggests that the rise in cattle prices is influenced by the activation of demand in North African countries. According to AHDB, active demand for beef in 2024 was observed in the markets of the USA and China. The driver of growing import demand in the USA was the reduction in the country's cattle population coupled with the rising consumption of red meat by Americans. USDA forecasts a 3% increase in beef consumption in the USA in 2024. In China, beef consumption is growing due to a certain easing of prices for products in supermarkets. According to AHDB estimates, from January to October 2024, China increased imports of red meat by 3% compared to the same period last year.
According to preliminary data from the SSSU, in December 2024, Ukraine imported 8 tons of live cattle amounting to 57 thousand USD. Compared to December 2023, the natural volume of imports decreased by 76%. Ukraine reduced imports of chilled beef to 17 tons (-26%), and imports of frozen beef decreased to 203 tons (-9%) compared to November 2024. Compared to December 2023, imports of chilled beef increased by 57%, and imports of frozen red meat increased by 1%.
Since the beginning of the year, Ukraine imported 478 tons of live cattle (-35%), 154 tons of chilled beef (+13%), and 2.54 thousand tons of frozen beef (+17%).
In December 2024, the balance of foreign trade in cattle and beef was positive and amounted to 13.58 million USD.
Press Service of the Association of Milk Producers
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