Cattle were introduced to Uruguay in 1611 by Spanish explorer Hernando Arias de Saavedra. Spain’s King Filipe III allowed “Hernandarius” to gather a small herd of cattle from the ranges of the Argentine Pampas and populate two islands located at the confluence of the Uruguay and Negro rivers in what was otherwise neglected Crown territory in the Americas.

His first 50 head of heifers and some bulls were turned loose on the islands and tended by “converted” natives overseen by Spanish missionaries. For the next 20 years, as governor of the region, Hernandarius was allowed to grow his holdings into an enormous herd of cattle that spilled over into the tall-grass prairies of what is now central Uruguay.

From the Leather Age to land reform

Hernandarius’ cattle were raised mostly for their hides, which were shipped to the Old World to produce desperately needed leather. Sometimes referred to as the Leather Age, this era marked a time when premiums were placed on livestock, including sheep, goats and swine, based on the type and quality of their hides.

By the middle of the 19th century, Uruguay had become dominated by the Latifundium, where enormous tracts of land with ill-defined boundaries were granted tax free to a few favored settlers. The splendor of Latifundium dominated the countryside only until, with independence in 1828, the country abolished slavery and subjected the landowning oligarchy to taxation.

Related:Global beef roundup: Focus on Argentina - Part 1

This agrarian reform movement, coupled with the creation of the Farmers Association of Uruguay in 1871, added to the rigorous land restructuring. Wire fencing was introduced in 1872 and, in 10 short years, reshaped the nation’s agricultural makeup.

A legacy of controls and exports

The advent of refrigerated shipping in the late 1800s made it possible to export beef to European markets, leading to a significant expansion of the cattle ranching industry. This period also saw the introduction of Hereford and Aberdeen Angus breeds to Uruguay, vastly improving beef cattle productivity.

From 1928 to 1978, social control of the Uruguayan meat supply chain manifested itself with the creation of Frigorifico Nacional, a government-owned slaughter and packing monopoly. Frigorifico was granted monopoly status to ensure a “defense of interests” – protecting Uruguayan cattle and sheep producers via market guarantees and domestic consumers through retail price controls. Meanwhile, Uruguay ramped up export subsidies and prohibited export of live animals.

As Uruguay tried to become a player in the 1970s global beef trade, leadership in Montevideo began to run afoul with countries joining the General Agreement on Trade & Tariffs and, later, the World Trade Organization. Annoyed by its heavily subsidized meat sector, WTO signatories in 1978 forced the breakup of Frigorifico. Price fixes on beef, wool and hides were also eliminated.

Related:Global beef roundup: Focus on Argentina - Part 2

For two decades, Uruguayan beef producers tried to gain a foothold in a stormy “free” marketplace. But without help from their country’s treasury, they had little foundation on which to stand. And the entire economy struggled as South America’s 1999-2002 continent-wide economic collapse swirled around Uruguay.

FMD and traceability

Meanwhile, from 1994 until 2001 Uruguayan livestock producers suffered through recurring outbreaks of foot and mouth disease (FMD), or aftosa. Direct damage to livestock productivity as well as the public and private costs invested in FMD prevention, control and eradication followed the outbreaks. The loss of markets for live animals, meat products and byproducts crippled the beef industry.

Control of the highly contagious viral disease included mandatory vaccination of all cattle in the country. By 2003, the World Organization for Animal Health (OIE) recognized Uruguay as FMD free with vaccination. The government still coordinates the protection against future FMD outbreaks. OIE has not yet recognized eradication of FMD in Uruguay.

Related:Global beef roundup: Focus on Brazil, Part 2

FMD control efforts, though, have ushered in a new era of accountability within Uruguay’s livestock sector. Today, it claims status as the world’s only country with a beginning-to-end traceability system.

Grass finishing prevails

Uruguay's cattle population is around 12.1 million head – four times the size of its human population. For the last several years beef production, has held steady at 600,000-700,000 metric tons (MT) annually, 150,000 MT of which is consumed domestically; the remainder is exported.

Angus and Hereford still make up 80% of Uruguay’s cattle genetics, with some Bos indicus crosses in the hotter northern part of the country. Steers from dairy breeds, mostly Holsteins, are an important part of the beef supply chain.

Roughly one-third of the country’s total slaughter comes from cattle fattened on grass or crop aftermath. The most widespread practice, though, is to finish steers on sown improved pastures and to supplement with either corn or sorghum silage or high-moisture grain for 90-120 days prior to slaughter. Today, about 150 feedlots finish 20% of the country’s steers, most of which are processed for export to the European Union.

Beef exports, quotas and tariffs

Since the late 2000s, the Uruguayan beef sector has successfully diversified from reliance on U.S. markets, developing important consumer bases in China, Russia and the EU. Uruguay’s beef exports in 2025 are projected to increase to about 475,000 tons MT. Nearly 67,000 MT of Uruguayan beef went to China last year, but China’s share may drop in 2025 as its economy retracts.

Exporters say the U.S. is a very safe market, but with higher demands in terms of inspection and sanitary standards, which result in greater costs and higher risks. Uruguay enjoys an annual U.S. beef tariff rate quota (TRQ) of 20,000 MT while paying about 2 cents/lb. in-duty. Exports outside the TRQ are subject to a 26.4% duty (based on value) paid to the U.S. Treasury. In 2023 and 2024, about 45,000 MT of Uruguay’s beef exports to the U.S. were outside the quota.

Frozen boneless beef is the main export to the U.S. and enters the supply of grinding beef used for blending into hamburger. In fiscal 2024, $482 million worth of Uruguayan beef was sold into North America – 94% via U.S. importers. China and the EU imported $446 million and $253 million worth of Uruguay’s beef, respectively, in 2024. About 6,000 MT of high-end grain-finished Uruguayan boxed beef is channeled into the EU’s “Hilton” quota system annually.

The relationship between Uruguayan producers and U.S. importers has generally improved over the last two decades. In 2015, Uruguay was the first country outside the U.S. to receive the U.S. Department of Agriculture’s “Never Ever 3” certification, reflecting cattle that were never given antibiotics or growth hormones or fed animal byproducts.

Last June, though, a California-based meat importer recalled 20,000 lb. of imported frozen beef from Uruguay on orders from USDA’s Food Safety & Inspection Service (FSIS) after the agency discovered, during routine surveillance activities, that the shipment had not been presented to FSIS for reinspection as required upon entering the U.S.

Uruguay’s live cattle exports are an important part of its beef sector. In 2025, 320,000 head of mostly young animals are forecast for export to Türkiye, Israel, Lebanon and China. Live exports can vary from breeding animals to steers and/or young bulls and heifers for fattening. Conflicts in the Middle East have diminished demand for cattle going into both Halal and Kosher slaughter. There are no reports of live cattle from Uruguay traded at North American ports.

Some challenges lie ahead

The number of Uruguayan cattle finished on grain is predicted to shrink as reduced European tourism threatens the amount of beef needed through the highly profitable Hilton quota. Also, a new EU-Mercosur (Argentina, Brazil, Paraguay and Uruguay) trade agreement may complicate elements of the Hilton quota system.

Additionally, Uruguay may get caught up in the EU’s frenetic scrutiny of global beef systems – especially those in South America – over deforestation and greenhouse gas emissions.

Last, the absence of a cattle’s future market, which increases the level of uncertainty in the business, continues to plague Uruguayan beef producers. And despite lower corn prices, the combination of weaker prices for fed cattle and only steady feeder cattle prices could play against the growth of Uruguay’s beef business in the years to come.

Editor’s note: In this series of reports on global beef production, the author draws on years of studying and analyzing global beef systems. His extensive travel to many of the world’s leading beef-producing countries offers a first-hand, objective look at the challenges and opportunities beef producers worldwide face in a highly competitive protein marketplace.

Read the whole series of Global BEEF articles:

Article 1: https://www.beefmagazine.com/market-news/global-beef-series-leveling-the-playing-field-on-quality-beef

Article 2: https://www.beefmagazine.com/market-news/global-beef-roundup-focus-on-brazil-part-1

Article 3: https://www.beefmagazine.com/market-news/global-beef-roundup-focus-on-brazil-part-2

Article 4: https://www.beefmagazine.com/market-news/global-beef-roundup-focus-on-argentina-part-1

Article 5: https://www.beefmagazine.com/market-news/global-beef-roundup-focus-on-argentina-part-2