March 8, 2010

Argentina's hold on EU beef market weakens

Low supplies of Argentina beef in the EU are increasingly being replaced by other beef producing countries, weakening the country's share in its highest value export market.

The significant reduction in the number of export certificates issued by the local government has tightened supplies from Argentina.

Argentinean beef has generally been a well marketed product across European steakhouses, taking advantage of its characteristic barbeque style among EU consumers and its 28,000-tonne High Quality Beef quota.

However, the image of Argentinean product has diminished in recent years, particularly over recent months, as product availability tightens, supply becomes unreliable and prices become increasingly expensive as cattle prices soar.

As a result, importers and restaurants, which have built their supply chains and menus around the Argentinean product, are now looking for other more consistent and reliable suppliers.