May 19, 2008

Argentina's beef exporters to face further curbs on exports

Argentinean meatpacks are now allowed to export only 25 percent of their beef stocks, according to a new legislation imposed by the  Argentinean National Agricultural Trade Office (ONCCA).

Only manufacturing type beef from heavy cows, which are not usually consumed on the domestic market, are exempted.

These restrictions come in addition to the total monthly limit of 45,000 tonnes cwt that ONCCA allows the industry to export.

However, sources within the industry believe that ONCCA, is not authorising exports anyway due to the massive amount of paperwork required. Furthermore, so far, only five of 300 companies have received export certifications (ROE).

The industry claims that there has been 85,000 tonnes of beef waiting to be certified since March, including several requests for the Hilton quota beef bound for Europe.

There is increasing concern amongst Hilton quota beef exporters, as there are around 6,500 tonnes of this beef waiting to be certified before June, with the possibility of sanctions in the case of default. The total yearly Argentinean Hilton quota consists of 28,000 tonnes.

Farm strikes over new export taxes on soy have further limited domestic beef and cattle supply.