Uruguay Changes Meat Market: What Argentina Can Learn

This difference reflects two production and trade models that currently give Uruguay a privileged position in the international market. According to a recent report from the United States Department of Agriculture (USDA), forecasts for 2026 show Uruguay's exports reaching 520,000 tonnes of carcass equivalent (CWE), the second-highest level in the country's history. Meanwhile, the country's total MEAT production will reach 635,000 tonnes of carcass equivalent, also close to a historical record.

Argentina, on the other hand, despite a significantly larger livestock sector, continues to be skewed toward domestic consumption, limiting its ability to capitalize on the dynamism of foreign markets. The comparison becomes inevitable, raising the question: why does Uruguay manage to EXPORT so much more while producing so much less?

Uruguay's strategy is clear: to produce high-quality  beef almost exclusively for export. In 2026, with a projected slaughter of 2.42 million HEAD, the industry will reach its third-highest slaughter level ever. The key factor is intensification: heavier animals, increased use of feedlots, and a shorter production cycle thanks to a bountiful corn harvest and two consecutive years of favorable weather.

Margins are also a powerful incentive. While production costs range from $2 to $2.15 per kilogram of live weight, fattening steers sell for $2.70 to $3, ensuring profitability even with high costs. This triggers a virtuous cycle: producers invest in efficiency improvements, meat processing plants demand more animals, and FOB export prices remain stable.

Unlike Argentina, it faces a constant dilemma: the domestic market absorbs approximately 70% of production. While this guarantees affordable meat for local consumers, it also reduces the country's export potential, limiting foreign exchange earnings and undermining the competitiveness of a chain that could have a much more prominent place in global trade.

The US is pushing CHINA out

A shocking development on the international stage has been the shift in Uruguayan beef's primary market. After more than a decade of absolute dominance, China will cede its leadership to the United States. Demand in the US, driven by a shortage of domestic supply and the imposition of tariffs on Brazilian beef, is opening up unprecedented opportunities for Uruguay.

This shift is no small success: until recently, China accounted for more than half of exports. Now that the US has taken center stage, Uruguay is diversifying its risks and entering a market where high-quality cuts command higher prices. Kosher, grass-fed, organic, and natural meats are gaining popularity, strengthening Uruguay's image as a premium supplier.

Argentina, for its part, also relies on China as a major consumer, albeit with a different export structure. Lack of full access to the US market due to HEALTH and trade concerns limits alternatives, making the country more vulnerable to fluctuations in Chinese demand. In this regard, Uruguay's diversification strategy appears more robust.

Uruguay's performance is assessed not only by volume but also by value. In the first half of 2025, shipments totaled $1.3 billion, up 30% from the same period in 2024 , despite volume growth of only 7.5%. This reflects high global prices and the country's ability to offer higher-value varieties.

By product type, 73% of exports are frozen boneless meat, followed by frozen bone-in meat (13%), chilled boneless meat (12%), and thermally processed meat (2%). The geography of exports is also expanding, including sought-after niches where traceability, animal welfare, and eco-certification are important.

Health controversies and foot-and-mouth disease

Foot-and-mouth disease is a sensitive issue for regional livestock production. Uruguay maintains its disease-free status thanks to vaccinations recognized by the World Organization for Animal Health (WHO). Although neighboring countries such as Brazil and Bolivia have already stopped vaccinating, and Paraguay is considering discontinuing them, the Uruguayan government has decided to continue vaccinating.

This measure is aimed not only at ensuring animal health safety but also at maintaining the confidence of markets that already accept meat from vaccinated animals. The decision received near-unanimous support from producers and meat processing plants. Argentina, in the region, also systematically vaccinates, although discussions about possible changes in animal health status occasionally resurface. In both cases, the key is not to jeopardize access to the most demanding markets.

Surprisingly, Uruguay also imports beef. In 2026, it expects to import 68,000 tons of beef, a historic high. The explanation is simple: high global prices encourage meatpackers to export most of their output, freeing up the domestic market for cheaper beef from Brazil, Paraguay, and, to a lesser extent, Argentina.

On the other hand, live cattle exports will remain significant: they are expected to reach 380,000 head by 2026. This business contributes to rising calf prices and stimulates breeding production, although the government closely monitors it to avoid shortages in the domestic industry. Debates about its continuation occasionally arise, but for now, the arguments in favor of its continuation prevail. Argentina, however, is practically not involved in this segment due to regulatory restrictions and the size of the domestic market.

Two models, two results

A comparison of Uruguay and Argentina clearly demonstrates that it's not just the number of animals raised that matters, but also how those products are used . Argentina produces five times more meat than Uruguay, but exports only 1.6 times more. The difference lies in the focus of each model: Uruguay exports eight out of every ten kilograms; Argentina, only three.

The economic impact is clear. For Uruguay, beef is a major source of foreign exchange and a driving force behind the national economy. In Argentina, despite the scale of its production, political restrictions, domestic market pressure, and macroeconomic fluctuations prevent it from fully exploiting the competitive advantages of its livestock industry.

Uruguay demonstrates that even a small country can compete in the top leagues of global trade thanks to a consistent strategy based on quality, traceability, and market openness. Uruguay's ability to diversify its destinations, maintain high export levels, and adapt to international demands places it in a privileged position.

Argentina, for its part, remains a "sleeping giant" in terms of exports: the country boasts one of the world's largest export production volumes, but limits its potential by prioritizing local consumption. In the face of growing global competition, Uruguay's experience offers interesting perspectives for rethinking Argentina's strategy.

Ultimately, the question is inevitable: does Argentina want to remain a barbecue nation for its own market or strive to become a key player in the global meat trade? Uruguay, with fewer resources but greater clarity of direction, appears to have found the answer.