August 30, 2013

Argentina is planning to increase its beef production and is considering Russia as a key market for the development of its beef exports to revive its shrinking beef export.

This is according to Mario Ravettino, vice-president of the institute for the promotion of Argentine beef, during recent negotiations with Yevgeny Nepoklonov, deputy head of the Russian veterinary watchdog Rosselkhoznadzor.

"Ravettino expressed interest in a substantial increase in the supply of premium-class Argentine chilled beef to Russia. The Argentine side is now preparing an extensive list of companies interested in supplying such products to the Russian market for submission to Rosselkhoznadzor. In addition, Argentina is interested in increasing the allowable shelf-life of vacuum-packed chilled meat, which currently stands at 90 days," reported Rosselkhoznadzor.

Aside from fillet, Argentina exporters would like to supply Russia with chilled meat on the bone. They suggest such products are in high demand in the country.

"Yevgeny Nepoklonov assured Mario Ravettino that Russia is interested in purchasing high-quality meat, including premium-class fresh meat from Argentina. However, the possibility to increase the supply and range of such products is limited by some key issues. In particular, due to a lack of funding, the Argentine side still has not conducted any studies to determine the appropriate allowable storage time for vacuum-packed chilled meat," added Rosselkhoznadzor.

According to the Argentine delegation, the country's meat exports are currently going through a bad patch. Ravettino pointed out that Argentina traditionally consumes about 75% of its own beef, exporting 25%. However now it is exporting only 7% of its beef, with 93% selling on the domestic market.

According to Rosselkhoznadzor, there is clearly great demand in Russia for beef products, and Argentine exporters could have good prospects in the market. However, in 2012 the supply of Argentine chilled meat products to Russia amounted to just 10 tonnes, while frozen beef supplies were lower than 9,000 tonnes. The next stage of negotiations is due to be held on October 2, 2013.