Uruguay sheep meat exports hit 10-year low as prices climb

URUGUAY – In the first 16 weeks of the year, Uruguay recorded its lowest sheep meat export volume in a decade, according to INAC data, while prices per ton moved to their highest level in the same period.

Export shipments reached 3,582 tons in carcass weight terms, with an average price of US$6,515 per ton, reflecting a 27% drop in volume compared to the previous year, alongside a 26% increase in value.

When measured against the average performance over the past 10 years for the same period, export volumes are 37.5% lower, while prices per ton are 40.5% higher.

Over the broader cycle, the pattern has remained consistent, with tighter supply pushing values upward, while 2023 stood out with more than 9,000 tons exported in the same window, at a lower average price of US$3,853.

Production and market shifts

Uruguay’s sheep sector has undergone structural changes over recent decades, with flock numbers falling from above 25 million in 1990 to an estimated range of 4.75 million to 5.85 million head in 2024, while production has shifted toward higher-value wool and lamb meat.

Wool remains a major export driver, with more than 29 million kilograms in greasy equivalent shipped during the first eight months of the 2024/2025 season and wool-related exports generating US$72.8 million in the first half of 2024, led by China at 46% and Italy at 15%.

Sheep meat output is estimated at 20,000 tons annually, and in 2023 export earnings declined 14% to US$90.8 million amid weaker shipment volumes.

Export flows remain concentrated in a few destinations, with Brazil accounting for 36% of frozen sheep meat exports and China taking 22%, while roughly 40% of meat from industrial plants is consumed locally and about 45% of total production is used within farming systems.

Industry structure continues to shift toward fine wool production, particularly Merino breeds in the north, while lamb production in the south targets heavier animals of 35 to 38 kilograms at six to eight months, within a sector supported by more than 21,000 producers, many of whom operate small family farms.

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