May 25, 2021

Argentina's beef industry concerned of damaging consequences arising from export ban


Argentina's beef production industry is concerned that the Argentine government's decision to stop exports in order to curb prices in the domestic market will generate serious damage to the activity.


The measure, which has been in force since May 20 and for a period of one month, has been widely rejected by exporters, slaughterhouses, unions, governments of some producing provinces and cattle farmers.


The South American country is one of the world's largest consumers of beef per capita (45 kilos per year). The Argentine government claimed that the export ban seeks to curb the price of the meat, which registered a year-on-year increase of 66.1 % in April, well above the general price variation of 46.3 %.


However, the beef sector said that closing exports will not only fail to contain inflation but also bring multiple economic damages to the country, dragging behind it three years of severe recession.


Furthermore, according to livestock consultant Víctor Tonelli, the price of meat jumped 10% in the international market following the announcement of the closure of exports, "and the worst thing is that 250 million dollars per month are no longer coming in from exports" to Argentina.


Argentina is the world's fifth-largest producer and fourth-largest exporter of beef. It sends abroad 30% of its production, with exports totaling US$2.72 billion dollars in 2020, driven by demand from China, which accounts for three out of every four tonnes of Argentine placements.


- The Rio Times

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