Uruguay plans concerted efforts to boost beef exports to China

MONTEVIDEO－Uruguay is redoubling its promotional efforts in China to boost its beef brand, as the Asian country has become a priority market for this top beef producer in South America, an industry official said.

Developing brand recognition among Chinese consumers is a "topic that interests us very much," said Federico Stanham, head of the National Meats Institute (Inac).

"Countries that have positioned their brand, such as Australia, achieve 25 percent higher sales in meats than we do," he explained. "Led by Inac, Uruguay has since April of this year launched a strong promotional campaign in China on social networks, at points of sale, and at food distributors and producers."

The campaign is designed to make the "Uruguay brand" better known in China, a destination for about 60 percent of Uruguay's beef exports. The campaign should "continue for several years to make us recognizable," said Stanham.

The campaign "has been seen more than 100 million times on social networks. That's very significant," the industry official said.

In China, "people shop online and also navigate shopping sites, and Uruguay having a presence there helps to make us more recognizable," he added.

For producers and exporters, "China as a market has several advantages: it has so many different regional cuisines and Chinese consumers find ways to prepare all of the parts an animal can supply," said Stanham.

When it comes to beef, for example, the Asian market "demands all of the various cuts. That's very beneficial because all of the production can be placed in China," he said.

To satisfy China's growing appetite for beef, Uruguay "has diverted its trade flow from traditional markets such as Europe, Chile, the United States, Israel and Russia," said Stanham.

"Today, it's more convenient to place your production in China rather than those markets. In several countries, the volume (of product) placed has decreased, but in China it has increased significantly," he said.

The Asian market is seeing "a rise in beef consumption," while the traditional markets are either holding steady or seeing a decline, he added.

So far this year, Uruguay has exported 446,000 metric tons of beef, generating revenue of $1.724 million. Of that total, China purchased 294,000 tons worth $1.012 million.

Uruguay's meat industry is eagerly anticipating a free-trade agreement with China to gain a competitive edge over rivals from Australia and New Zealand, both of which enjoy benefits from tariff reduction programs.