July 7, 2008

Argentina's unprocessed beef exports reached only 6,474 tonnes swt in May, the lowest level since May 2006, but the situation is improving as farmers stopped the agricultural strike.

In the first five months of 2008, Argentina's beef export volume fell 4 percent on-year and 14 percent from 2006.

The low export volume was due to the Argentine government restricting exports to curb food price inflation in the domestic market; shipments were impacted by increasing delays in the issuing of export certificates and a requirement for meatpackers to use 75 percent of their capacity for domestic supply, as well as other cattle and beef controls.

Months of agricultural strikes and road blockades had also decreased cattle supply to markets and slaughterhouses, especially of export heavy steers.

However, the beef supply has increased considerably on the domestic market in the past two weeks after the strike stopped. Cattle yardings at Liniers Market in Buenos Aires reached 60,551 head last week, as road blockades were removed and producers released their animals. Prices have remained stable as cattle are sold under the government's price cap.

On the other hand, total average beef export values have reached a new record of US$8,795 per tonne - Hilton cuts averaged US$17,226 per tonne while non-Hilton cuts averaged US$5,695 per tonne.