Mercosur beef exports decline as Brazil's supply slows

Beef export trends within the Mercosur bloc have shifted significantly during July and August. While the regional supply saw a 16% year-on-year decline driven by a slowdown in Brazil, Uruguay, and Paraguay, Argentina experienced growth. Argentina exported 72,900 tons in August, its highest monthly volume for 2026, contributing to a 5.9% increase in shipments for the first eight months of the year.

Brazil, previously the primary driver of regional exports, saw a sharp reversal. Between July and August, Brazilian beef exports fell 20% year-on-year, largely because the country nearly exhausted its tariff-free access quota to China. This contraction significantly impacted the overall Mercosur balance.

In the Brazilian domestic market, wholesale beef prices remain supported by restricted supply and rising cattle costs. Despite lower consumer purchasing power affecting retail movement, wholesale prices in regions like São Paulo have seen increases across various cuts, including beef carcasses and boneless meat, as industries seek to maintain favorable margins.