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Uruguay's National newspaper reported on January 15th that although China's total imports of meat and soybeans will increase by 59.6% and 13% respectively in 2020, Uruguay has failed to grasp this opportunity, with exports of beef and soybeans to China falling by 30% and 39% respectively.
The newspaper quoted an analysis by Uruguay's Investment and Export Promotion Agency and the Catholic University Business School as saying that the decline in soybean planting area and yields in Uruguay caused a decline in uruguay's exportable soybean supply in 2020, which was the main reason for the decline in U.S. soybean exports to China, and that China's procurement of U.S. soybeans in order to comply with the U.S.-China trade agreement also had an impact on the structure of China's soybean imports.
And the decline in U.S. beef exports to China is mainly due to competition from similar products such as Brazil, where Uruguayan beef has had an advantage in the past because of outstanding sanitary conditions, but competing countries such as Brazil are catching up, and U.S. beef is facing serious challenges in the Chinese market from larger suppliers.