The Argentine government has finally released the remaining 60% of the Hilton high quality beef (HQB) quota among local exporters, leaving little more than two months to ship around 19,000 tonnes, according to reports.

Although the government had already distributed 11,200 tonnes (40% of the total 28,000 tonne quota) to date, only 9,000 tonnes have been shipped. The industry expects FOB prices to ease as larger volumes are shipped during the remainder of the 2009-10 fiscal year.

According to local analysts, it is unlikely the 28,000-tonne quota will be fulfilled, with many estimating Argentina's HQB shipments to remain below 20,000 tonnes in 2009-10 because of limited cattle supply. In addition, only a few low domestically demanded cuts are currently allowed for export by the government, thereby restricting carcass usage.

Furthermore, the Domestic Trade maintains strict export controls and allows an extremely limited number of packers to export. Some packers, many of whom are export-oriented, have temporarily ceased operations as high cattle prices, an almost total export ban and limited domestic trade have made operations unprofitable.