Poor performance of Uruguay’s ovine sector, hit by low international prices

Poor performance of Uruguay’s ovine sector, hit by low international prices

Exports of the Uruguayan ovine sector reached US$ 157 million in the first eight months of the year, (Jan/August), according to the Uruguayan Wool Secretariat, SUL, which represented a 17% drop in value.

Wool overseas sales fell 10% in the volume exported, some 16,682,236 kilos and a 21% decrease in value, US$ 92,508 million with Italy and China the main purchasers. This reflects the slowdown of the global wool demand, mainly for the medium and coarse fineness complicating the accumulation of stocks. Uruguay still has three to four complete clips of medium and coarse wool which remain unsold, and discouraging the overall farming sector,

Exports of coarse wool this year reached 5,56 million kilos, up 17% compared to the same period a year ago, but only generated US$ 17,6 million or 18% less. Main clients are China and Bulgaria.

Sales of scoured wool fell 16% in volume, 3,289 million kilos generating US$ 11,64 million which represents a fall of 18%, China and Egypt were the main clients.

Export of tops were down 19% in volume, 9,960 million kilos generating US$ 51 million, also down 20%, with main destinations to Germany and Italy.

As to the export of lamb, exports increased. The volume of frozen meat with bones increased by 24%, but sales generated US$ 64,5 million, which represented a drop of 9%. The main buyers of frozen lamb were China and Brazil. SUL points out that China has the largest flock of sheep in the world and a great stock of both wool and lamb, so until demand does not absorb those stocks world prices in the ovine sector should remain flat low.