The Chilean animal husbandry industry has recently ushered in important changes. Due to the increase in demand for high-quality products, China has set its sights on Chile’s fine varieties, which has significantly increased Chile’s live cattle exports to China.
China’s increasing demand for quality products
Chile’s”Three O’clock” reported on April 16 that since 2014, some local Chilean producers have begun to explore the export of live cattle as a way to alleviate the price crisis of certain types of products. The original export destination was Turkey, and the product was young male breeding cattle. By 2017, the situation has changed and Chile has also begun to export female cows.
For the Chinese market, the increase in consumer demand for high-quality products is the main reason for the purchase of live cattle. In order to improve the varieties, China is very attractive to Chile’s excellent varieties. In addition, the free trade agreement and good health cooperation agreement signed between China and Chile also facilitated the export of live cattle.
Chile company Tattersall Ganado general manager Alexander Vial (Alejandro Vial) said:”We export the most small dairy cows, which are Holstein cattle. They (the Chinese) want to increase milk production and choose to purchase from Chile. It’s because the breed’s genes and health status are excellent.”
Chilean company Corpcarne president Sergio Willer (Sergio Willer) said:”From 2020, China is our main market.” In addition to China and Turkey, they also export a small amount of live cattle to other markets. Such as Argentina, Peru, Ecuador, Cuba and Paraguay.
United Chile Export is committed to sourcing live cattle for export. The company’s purchasing manager Felipe Silva said:“In 2020, we have successfully exported approximately 24,000 cattle to China. Mavericks. This year, according to the epidemic prevention and quarantine situation, we hope that exports to China can increase by about 50,000 heads.
Chile’s Puerto Montt Port Company (Empormontt) recently stated that they have completed the first batch of live cattle exports to China this year as planned, with a total of 5,990 calves and a value of over 7 million U.S. dollars. The entire shipment process was carried out by the Chilean Customs Administration ( Servicio Nacional de Aduanas), Chilean Agriculture and Animal Husbandry Agency (SAG) and other institutions and related companies are coordinated and supervised.
Chile industry:Live cattle export is good for domestic animal husbandry
In addition, in terms of production, Francisco Cox, manager of the Chilean Meat Enterprise Association (Achic), said that although the export of small dairy cows and live cattle has increased, compared with 2019, Chile’s 2020 milk Production has also increased. He said:”This is a huge motivation to increase and improve production, because over time, exports can increase the profitability of the production sector.”
Silva added that this effect is positive for the entire industry because it means direct injection of fresh capital into producers, which is the first link in the production chain.”The export of (live cattle) is positive for the country, especially for the domestic animal husbandry industry. Some people who don’t know much about the field, even domestic market participants, think this is taking away live cattle, but the reality is the opposite. This is a huge driving force, real money from China, and fresh capital injected into the first link of the production chain.” He said.
In response to the increase in the price of domestic beef in Chile, Horacio Bórquez, Director of the Chilean Agriculture and Animal Husbandry Bureau, said:“(Live cattle) exports have not caused a shortage of milk and beef in Chile, because cattle Both the number of groups and the stability of domestic production have been guaranteed. At the same time, domestically produced milk and beef have not decreased…Price changes depend on many factors, mainly related to international prices, and are balanced with output and imports and exports.”< /div>