In a trade and diplomatic move, China has expanded the import range of frozen beef from Uruguay starting December 26, 2023.
China’s General Administration of Customs (GAC) reiterated that the imports will only come from non-foot and mouth disease zones.
Additionally, GAC underscored its trust for Uruguay’s Ministry of Livestock, Agriculture and Fisheries to inspect and sanitize the beef.
It is however the expanded by-products of beef from Uruguay that have drawn much praise. The Latin America country will henceforth ship to China frozen beef tripe (first ruminant abdomen) and other internal tissues.
According to the National Meat Institute of Uruguay, tripe alone may garner $40 million to the country, given its rarity. This extra amount will treble the annual revenue that beef exports to China bring the South American nation.
Besides, frozen liver and kidneys will also add to the beef by-product lineup. By exporting these products, Uruguay ranks as one of a handful of nations that allow belly tissue exports to China.
Most countries ship only red meat, such as Australia, the sixth biggest beef supplier to China in 2022 with 6.8% volume. Like Uruguay, Australia also received a nod to export beef again to China in December 2023, amid falling cattle prices domestically.
In Uruguay’s case, however, it is not just beef that has got a clearing. A day earlier on December 25, Beijing allowed more mutton imports from its South American ally. This was in honor of President Luis Alberto Lacalle Pou of Uruguay who had visited China earlier in November.
Mutton and beef exports from Uruguay to China make up 60% of all international meat shipments by Uruguay. The country exports the equivalent of $1.6 billion of these two animal meat products to China per year.
Among the most luring factors for this trade rapport include the huge size of the Chinese market and price. China in 2023 has been paying an average of $4,200 per metric tonne of beef from Uruguay. This has comparatively favoured Uruguayan suppliers vis-á-vis their U.S. counterparts who charge Chinese clients $9,686 per metric tonne.
This is why Uruguay remains a competitive source of beef products and hence the expansion in meat trade with China.