June 25, 2010
Argentinean beef exports to the EU lifts in May
Beef exports from Argentina during May were up 27% on April, to 8,704 tonnes swt, mainly as a result of the 133% increase in "Hilton" High Quality Beef (HQB) exports to the EU, to 3,399 tonnes swt.
Argentinean exporters have rushed to try and complete their respective shares of the 2009-10 quota - with a rising number of shipments being air-freighted in June. In contrast, total beef exports remain 64% lower on-year.
The urgency comes as a result of the delay in the distribution of the HQB quota among local exporters by the Argentinean government (which allowed HQB shipments of the 2009-10 period to start only in November), in addition to the tightening of export restrictions, given the fall in local Argentinean supplies.
The local industry estimates that only 18,000 tonnes will be shipped out of the total 28,000 tonne HQB quota for the 2009-10 fiscal year.
In addition to the reduced supplies for the EU, European importers have advised Argentinean suppliers they will be applying discounted quotes for their products. Also, a number of major EU importers are evaluating with EU authorities over taking the responsibility of distributing Argentina's quota among exporters (instead of the Argentinean government) to secure a more reliable distribution and supplies, Infocampo said.
