THE Chilean imported beef market continued to gain prominence for several beef exporting nations in 2012 including Australia, with total imports for the past year up four per cent to 130,414 tonnes swt.
Meat and Livestock Australia reports that with a slowly declining cattle herd and falling production, Chile is continuing to look externally for additional beef supplies, with higher shipments from Brazil, Argentina, Australia, Uruguay and US in recent years.
An expanding middle class, comparatively robust economic conditions and an already high per capita consumption of beef has helped to fuel the recent increase in imports.
However, it should also be noted that a lack of profitability in the Chilean beef industry and high land costs has seen producers reportedly turning to other enterprise, accentuated by cheaper cattle and beef prices from Brazil and Paraguay.
Chile was the sixth largest destination for Brazilian fresh beef in 2012, totalling 65,479 tonnes swt - an increase of 91 per cent year-on-year.
Australian beef shipments to Chile also increased substantially in the last two years, totalling 16,386 tonnes swt in 2012.
During the past year, Australia’s exports to Chile were 100pc grass fed, 89pc chilled, with thick flank/knuckle accounting for 19pc of total shipments.
The importation of Argentinean beef accounted for 21pc of total imports in 2012, with Uruguay accounting for 12pc and the US 6pc.
The US has been very successful in expanding its presence in the Chilean market, increasing volumes 124pc year-on- 2012, to 8927 tonnes swt.
The Chilean economy is expected to keep growing and demand for beef is expected to be stable in 2013.
However, with Paraguayan beef re-entering the market, following a Foot-and-Mouth Disease ban, competition in the market is expected to increase significantly.
