Uruguay steps up beef promotion in China and the EU

Uruguay’s meat processing industry is strengthening its export strategy by focusing on the Chinese and European Union markets amid financial challenges facing the sector. The National Meat Institute (INAC) has announced a larger international marketing budget to promote Uruguayan beef, aiming to capitalize on strong global demand and favorable market conditions.

The industry’s financial situation remains difficult. According to the Central Bank of Uruguay, total bank debt of meat processors has once again exceeded $500 mln, setting a new record and nearly doubling compared to two years ago. At the same time, cattle slaughter in 2026 is running about 16% below last year’s level, increasing pressure on processors.

The sector has also faced additional challenges after INAC imposed sanctions on several plants for violations related to slaughtering and carcass processing. The institute stressed that the penalties are intended to improve compliance and product quality rather than generate revenue. Meanwhile, the Fricasa meat plant remains closed since March, leaving more than 400 employees without work.

During the second half of the year, Uruguay plans to strengthen its presence in China, expecting competitors such as Brazil and Australia to redirect part of their exports to other destinations. INAC also aims to expand its position in the EU following progress on the Mercosur–EU agreement and is increasing promotional spending across European markets.

Despite current uncertainty, INAC remains optimistic about the long-term outlook, citing strong global beef demand and favorable prices. Uruguay is also seeking new export opportunities in Southeast Asia and sees Saudi Arabia as a promising niche market for its beef exports.