August 27, 2008

Argentina's beef production has dropped by at least 6 percent on-year to 1.44 million tonnes in the first half of 2008, as exports lay low.

Argentina's per capita beef consumption is 64 kg and with food inflation, the government imposed a near-total ban on beef exports to control inflation rate, leading to exports falling by a quarter in the first half of 2008.

Exports to the EU dropped from 23,700 tonnes to about 19,000 tonnes. Fresh beef exports to non-EU states suffered a blow, as shipments fell from 30,000 tonnes to slightly over 15,000 tonnes.

Exports of frozen beef have traditionally been a major source of revenue for Argentina's beef sector but shipments have declined to 57,300 tonnes from over 66,000 tonnes.

Shipments to Russia also suffered a drop of nearly 3,000 tonnes to 28,000 tonnes.