May 11, 2007

Argentina's beef exports to Spain down 27 percent

Spain's beef imports from Argentina dropped by 27 percent year-on-year in the first quarter of 2007, to 979 tonnes and its value also fell by 15.6 percent to 5.7 million euro (US$7.7 million), data from the Argentine Institute for Promotion of Beef (IPCVA) showed on May 10.

In 2006 Argentina exported 3,652 tonnes of beef worth 25 million euro (US$33.8 million) to the Iberian Peninsula.

IPCVA president Dardo Chiesa said the Argentine beef industry is mulling over new distribution channels and will export products of higher price and quality to offset the drop in beef volume in the Spanish market.

Chiesa added Argentine beef has been distributed to Spanish restaurants and hotels with large supermarket chains expressing interest to import high-quality beef.

IPCVA targets to export 500,000 tonnes of beef in 2007, a relatively low result, as it accounts only for 70 percent of the total exports in 2005, when Argentina registered a record in beef exports.

Argentina is the world's third largest beef exporter and sold 360,000 tonnes in overseas shipments 2006. The country's beef exporting industry suffered from restrictions last year in exports as part of the government's policy to restrain inflation.

Russia is Argentina's top beef market followed by Germany, Chile, Italy and the USA.