February 16, 2007

Argentina delays export licences

The Argentine government is delaying the issuance of beef export licences as a way to indirectly limit beef exports, said the Brazilian Meat Monitor (BMM).

The government continues to struggle against rising domestic beef prices. Prices increased 1.4 percent in January compared with the month before and by over 5 percent compared to the same month last year.

The government has delayed the granting of licences for up to two weeks, when they are normally issued within 48 to 72 hours, said exporters. The delays have left more than 50,000 tonnes of beef, ready for shipment in cold storage.

Limitations on exports and prices have seen production and investment collapse in Argentina, according to the BMM.

Argentine cattle ranchers reduced investments by US$300 million in 2006, down 33 percent on 2005, and production fell to 3.13 million tonnes, down 3 percent on 2005.