September 3, 2009

Argentina's beef exports rose sharply in July due to a high slaughter rate and government encouragement of shipments to raise foreign currency inflows.

Exports in July rose to 56,637 tonnes, up from 28,892 tonnes a year ago and 48,824 tonnes in June, according to the latest data from the animal health and sanitation service, Senasa.

Exports of fresh and processed beef and innards in July were valued at US$175 million, up from US$136 million a year ago.

During the first seven months of the year, Argentina exported 310,099 tonnes valued at just over US$1 billion, compared with 192,535 tonnes worth US$795 million a year earlier.

So far this year, Russia has been the leading market for Argentina's fresh beef exports, buying 67,024 tonnes, followed by Chile with 21,778 tonnes, Israel with 16,369 tonnes and Venezuela with 15,197 tonnes.

Exports have risen due to a significant easing of restrictions on overseas sales by the government, which has been encouraging shipments to generate export-tax and foreign-currency inflows. Last month, Production Minister Debora Giorgi announced a further loosening of the export requirements.

Previously, beef exporters had to set aside 65 percent of their production for the domestic market, but that amount was lowered to 30 percent. In addition, the companies no longer have to set aside the pricey cuts generally favoured for export.