October 1, 2010

Argentine beef exports continue to track lower during the eight months to August, down 51% to 116,474 tonnes swt compared with the same period in 2009, according to the Argentine Foodstuff Quality and Safety Service (SENASA).

The drop in exports is a result of the shortage of cattle, following years of liquidation as a result of the government's intervention since 2005, and the severe drought during 2008-09.

Although the government continues to control exports, soaring domestic beef prices have encouraged the few processors still operating to divert beef into the domestic market as a result of the higher returns compared with previous years.

Russia has continued to be Argentina's main export market this year, despite the exports to this market falling 65% to 28,455 tonnes swt and accounting for only 24% of total shipments from Argentina, compared with 34% during the first eight months of 2009.

Israel has been Argentina's second largest market this year, accounting for 15% of total volumes shipped. Other major markets include Germany (14%), Chile (9%) and Venezuela (7%).