September 7, 2007

Argentina tightens beef export regulations

Beef packers in Argentina are facing stricter regulations on beef exports on fears of cattle supply shortage in the near future.

Recently, beef exporters are getting difficulties in obtaining export certificates (ROEs) from the National Agricultural Trade Control Office (ONCCA), lowering Argentina beef supplies in the world market.

The Argentine government currently allows exports of up to 70 percent of the volumes shipped in 2005 - a year in which record exports increased domestic beef prices, resulting in the exports restrictions from March 2006.

Strong cattle liquidation in recent weeks resulted into forage deficit in the main cattle regions. A lower cattle slaughter rate is predicted for the coming spring as pastures improve and producers retain cattle.

Foreign buyers of Argentine beef will look to other Brazil and Uruguay if the country continues to limit its beef supplies.