Ukraine sharply reduced beef exports

In January 2024, Ukraine reduced live weight cattle and beef exports. The reduction in supplies occurred in the context of weakening global demand for beef, which was noticeable as early as the 4th quarter of 2023. As the analyst of the Association of Milk Producers Giorgiy Kukhaleishvili noted in this regard, the consumption of red meat in certain regions is decreasing due to crisis phenomena in the economy, and competition among suppliers is intensifying due to an increase in the supply of Australian beef.

According to preliminary data, in January 2024, Ukraine exported 568.55 tons of live weight cattle, which is 166% less compared to December 2023. Revenue from delivered animals amounted to 1.51 million dollars. and decreased by 187% compared to the previous month. All deliveries were directed to Lebanon. Compared to December last year, cattle exports decreased by 227% in physical volume and by 306% in monetary terms. In January 2024, Ukraine sharply reduced the volume of exports of chilled beef to 823 kg, which is 32.97 tons less compared to December. The monetary revenue for the delivered goods decreased to 8.99 thousand dollars, which is 107.61 thousand dollars. less compared to December. Red meat was supplied to Moldova, St. Kitts and Nevis and Turkey. Compared to January of last year, natural volumes of chilled beef exports decreased by 294%, and revenue for the delivered product decreased by 120%.

At the same time, the natural volumes of frozen beef exports in January decreased to 1.3 thousand tons (-38%), and the monetary revenue for the delivered meat decreased to 5.6 million dollars. (-39%) compared to December 2023. About 51% of exported beef was sent to China, 29% to Azerbaijan, 16% to Georgia. Compared to January 2023, natural volumes of frozen red meat deliveries increased by 13%, and export revenue increased by 22%.

In this regard, Giorgii Kukhaleishvili suggested that Ukraine's reduction in beef supplies to foreign markets may be due to the weakening of global demand for red meat in recent months. In his opinion, the economic situation affects the reduction of beef consumption in China and Europe. The increase in cattle slaughter in Australia and the lifting of restrictions in Argentina on the export of certain types of beef have led to an increase in the supply of beef in the world and tougher competition among suppliers. In particular, the world demand for American beef has decreased against the background of the mentioned factors. Also, in the USA, there is a fairly active demand for beef in the domestic market against the background of a reduction in the number of cattle. Although, certain narrow cities exist in the live cattle market. In particular, restrictions on the export of live animals in certain European countries have led to increased interest in importing countries to buy cattle in Ireland.