March 1, 2010

Argentina beef sector worries over Hilton exports

The Argentinean beef industry is concerned that their 28,000-tonne "Hilton" High Quality Beef quota will not be filled in 2009-10, as a result of government delays in distributing the allocations among exporters.

During the period from July 2009 to January 2010, only 5,647 tonnes swt or 20% of the total quota was filled. During the period July to October 2009, there was no Hilton beef exported from Argentina to the EU.

The government has been assigning the quota to the industry through small batches of 2,800 tonnes or 10% of the quota throughout this financial year. The main concern comes from the fact that 60% of the quota has not been distributed, and there is little more than three months left to ship the products, considering that containers must leave Argentina in early June.

In addition, the Argentinean government's restrictions on the issuing of export certificates for all exports, including non Hilton, in an attempt to increase domestic beef supply, has contributed to a 30-40% fall in processor activity.