January 5, 2007

Argentina November beef exports down 4.4 percent on year
 

Argentina exported 62,885 tonnes of fresh beef, offals, processed meats and Hilton Quota cuts in November, down 4.4 percent from the same month in 2005, according to the animal and food-inspection agency, Senasa.

However, higher beef prices increased the dollar value of exports. November beef exports were valued at US$ 164 million, up 3.1 percent from the US$ 159 million in November 2005.

The fall in beef export volume was a result of government policies to restrict exports in order to keep down domestic beef prices. Domestic prices have been a major source of friction between the Argentine government and farmers.

In December, Argentina's leading farm groups went on a strike for a week amid rumours that the government was going to further limit beef exports to just 45,000 tonnes per month. The government backed off, deciding to maintain beef export restrictions at current levels, or 70 percent of 2005 shipments. Hilton Quota cuts, certain pricey hindquarter cuts and export quotas based on bilateral treaties are exempted from the limits.

In March 2005, President Nestor Kirchner banned almost all beef exports to prevent soaring domestic and international demand from pushing beef prices up. The limits were progressively eased to current levels.

Domestic beef prices have jumped in recent weeks with the approach of the summer barbecue season.

To counter the gains, the government has been circulating a list of reference prices for certain cuts, which vendors at the nation's principal slaughterhouse, Liniers, are "recommended" to honour.

An average Argentine eats about 66 kilograms of beef, the highest rate of consumption in the world.