April 19, 2007

Argentina beleaguered by beef shortage

Argentina is facing a beef shortage due to suppliers who are unwilling to sell their product at government-imposed prices.

According to meatingplace.com, the government's attempt to control prices has divided the market, creating one with high prices and abundant supplies and the other with low prices and empty shelves. Supermarkets are apologising to customers through signboards for the shortage of some beef cuts.

Esteban Fernandez Medrano, director of MacroVision, a local economic consultancy said the shortage of products is a "clear signal of a market distortion resulting from the government-imposed price controls".

Argentine president Nestor Kirchner imposed a ban on beef export