November 29, 2008

Argentina's unprocessed beef exports from January to October have declined 17 percent on-year to 198,000 tonnes swt.

Compared to the 2005 exports which reached 360,000 tonnes, the considerable lower exports was due to ongoing export restrictions placed by the government in order to increase supply and curb inflation in the domestic market.

The global credit crunch also affected exports in October, with shipments reaching 22,350 tonnes, down 26 percent from September.

Despite the decrease in volumes, average prices have skyrocketed by 140 percent from 2005 to the current US$6,294 per tonne.

The price increase is caused by a larger proportion on EU Hilton beef cut exports, as these exports have fewer restrictions and exporters have shifted their focus to shipping high value cuts, leaving the remainder for the domestic market.

Argentina’s key markets are Russia, the EU and Chile.