Argentine Beef Plant Halts Output After Roof Collapse​​

 Argentina's 1918 Beef Plant Halts Production After Roof Collapse

Core Incident Details

1. 1.

   Plant Background

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     ECOCARNES S.A. (1918 Plant): Argentina's second-largest beef processor, registered with China Customs (Code: CARG0101180801) as an approved beef exporter to China, Brazil, and the U.S. .

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     Production Scale: Normal monthly slaughter capacity of 14,000 cattle, contributing significantly to Argentina's beef export.

2. 2.

   Accident Overview

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     On July 3, 2025, the slaughterhouse roof collapsed due to aged equipment (nearly 40 years old) and inadequate maintenance, paralyzing operations. No casualties reported.

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     Production Impact: July slaughter volume plummeted to 1,412 cattle (only 10% of normal capacity), forcing a one-month shutdown for repairs.

Impact on China's Beef Supply

1. 1.

   Supply Chain Disruption

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     Short-Term Reduction: 1918 Plant accounts for ~3.3% of Argentina’s beef exports to China (2025 H1 data). Its shutdown may reduce high-end beef shipments in Q3 2025.

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     Market Vulnerability: Argentina supplies 20% of China’s imported beef, primarily mid-to-high-end cuts (e.g., ribeye, striploin). Price volatility is expected in this segment.

2. 2.

   China's Regulatory Stance

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     As of August 25, 2025, no import ban has been issued by Chinese customs, but ongoing safety assessments may trigger future restrictions .

Trade Diversification Recommendations

1. 1.

   Alternative Suppliers

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     Brazil: China’s largest beef source (2024: 1.18 million tons), with expanded export quotas post-U.S. tariff negotiations.

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     Uruguay: Stable exporter with 12% share of China’s beef imports, offering similar grass-fed beef profiles.

2. 2.

   Mitigation Strategies for Importers

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     Price Monitoring: Track Brazilian/Uruguayan beef spot prices (e.g., Uruguay’s Novillocut surged 8% post-incident) .

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     Contract Flexibility: Negotiate force majeure clauses with Argentine suppliers to cover shipment delays.

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     Quality Verification: For substitute sources, confirm certifications (e.g., Brazil’s SIF, Uruguay’s EU-equivalent standards).

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