June 3, 2008

Argentina to set monthly wheat export quotas

Argentina will require wheat exporters to declare their existing stocks and will set a monthly export quota designed to ensure domestic supply, according to a resolution published in the Official Bulletin Friday (June 3, 2008).

The national agricultural trade office, or ONCCA, will calculate domestic needs each month, add 20 percent to "prevent contingencies that could cause future shortages," and then issue export permits for the remaining amount, according to the resolution.

The resolution is the latest in a serious of measures designed to boost domestic food supplies to rein in soaring prices. An on-again, off-again farm strike launched in March to protest grain export taxes has reduced supply and further driven up prices.

Similar measures have been imposed to limit beef exports.

On Friday, the government set new limits on beef innards exports, ordering exporters to declare total production capacity and only allowing half that amount to be shipped.

Last month, the government announced that it will require beef exporters to increase production and sales to the domestic market before authorizing shipments.

Exporters will now have to declare their total beef production capacity and then be authorized to export 25 percent of that amount, with the rest going to the domestic market. If a beef exporter is not producing at capacity, then the amount authorized for export will be reduced accordingly.