October 7, 2010

Argentine beef exports lose competitiveness

Argentina is losing opportunities in the global beef markets to rivals like Uruguay, Chile and New Zealand, due to home restrictions on exports and tough industry conditions, the Financial Times reports.

Argentina's beef producers warn that their business has been hampered by limits on exports imposed by the government. Moreover, many cattle farmers have been forced to switch to agriculture due to poor weather conditions and economic uncertainty.

Argentine beef exports are expected to be around 320,000 tonnes this year, less than half of their record 2005 levels, while cattle numbers are now back to 2001 levels.

Adding to the pain of beef producers, rivals from other countries are cashing in on Argentina's troubles. Uruguay is expected to export more beef than Argentina this year.