March 9, 2010

JBS chief slams Argentina's farm policy

The chief executive officer of JBS SA, the world's largest meat group, has joined critics of the Argentinean government's farm policies, saying they are holding back growth in the beef sector.

JBS CEO Joesley Mendonca Batista said the group's Argentine division had been undermined by unpredictable conditions which were likely to hit profits again this year. The unit's loss at the level of EBITDA surged from ARS25 million (US$6.5 million) to ARS166.5 million (US$43.174 million) last year.

Self imposed trading restrictions and application of high tariffs will not boost growth in the beef sector. The earlier they end, the better it is for the entire beef supply chain, said Batista.

Argentina had limited exports of beef to ensure sufficient supply for the domestic market and to prevent price inflations. The government also regulated wheat exports and levied heavy taxes on corn and soy shipments, angering the agriculture sector and leading to sporadic strikes for the past two years.

Last month, farmers rallied in the farming province of Santa Fe to protest against wheat export curbs.