September 9, 2010

Marfrig receives premium share of Argentine beef export quota

Marfrig Alimentos SA, the world's fourth-biggest beef producer, received the largest share of an Argentine quota to export premium beef at a special tariff to the EU.

Four Argentine units of the Sao Paulo-based company will be allowed to ship a combined 3,142 tonnes under the "Hilton Quota" in the year to June 30, 2011, the government's official gazette announced on Wednesday (Sep 8). Marfrig also won the biggest share of the 2009-10 quota.

Total Argentine beef exports in the first seven months of the year fell 51% from a year earlier to 110,000 tonnes, according to data compiled by the Argentine Beef Promotion Institute. Herds are shrinking in the country after farmers faced the worst drought in over 70 years in 2008 and then slaughtered more cattle than usual in 2009 as the government blocked exports to ensure supplies for the domestic market.

Meanwhile, JBS SA, the world's largest beef producer, announced August 29 that it may sell three of its Argentine plants due to government restrictions. JBS was awarded 2,046 tonnes of the 28,000-tonne "Hilton Quota", the government gazette said today.

Argentina, the second largest per-capita consumer of beef after Uruguay, received about 50% of a 58,000-tonne quota divided between eight countries. The other countries awarded permits are Canada, the US, Brazil, Paraguay, Uruguay, New Zealand and Australia.