March 22, 2010

Argentine customs continue to hold beef shipments

Argentine beef exports are still being blocked by customs, with a number of containers being returned to cold stores, despite the Secretary for Domestic Trade (SCI) announcing that the ban will end soon.

The ban comes as a result of the low supplies and soaring beef prices in the domestic market.

According to industry sources, the SCI will implement an export certificate requirement (Pre-ROE) which exporters will need to apply for prior to the current export certificate (ROE) administered by the National Agricultural Trade Control Office (ONCCA).

In the Pre-ROE, exporters will need to inform the SCI of volumes and cuts to be dispatched by the packer. After approval from Internal Trade, packers will be eligible to apply for ROEs to ONCCA.

In addition, SCI has persuaded packers to avoid purchasing cattle from the Liniers Market (the main cattle market in Argentina) – encouraging cattle price falls.

Industry workers are concerned about their short term employment, as more than 10,000 workers have been affected between layoffs and suspensions, given that deboning is done in plants mainly for the export market. Domestic wholesale sales are done mainly through half carcases and further deboned in butcheries.

Meanwhile, producer and beef organisations are calling for a halt to cattle marketings unless exports are released soon.