Argentina plans to halt beef exports for a month
The Argentinian government plans to halt beef exports for at least 30 days to ease prices in the domestic market. Beef is one of the most sold products from Argentina in export markets and has seen an increased demand from China in the last couple of years. Currently, Argentina ranks fourth in the world's Top largest beef exporters, with around 900,000 tonnes exported in 2020 for a total of $2.5 billion.
Sources from the Productive Development Ministry and meat-processing industry confirmed the news to at least two local outlets and a news agency, saying that the measure would remain in place "until the domestic market is ordered.", reported Buenos Aires Times. The only official announcement from the government speaks of several measures that must be implemented to stop the inflation in the domestic meat market. "As a consequence of the sustained increase in the price of beef in the domestic market, the national government decided to implement a set of emergency measures aimed at ordering the operation of the sector, restricting speculative practices, improving the traceability of exports, and avoiding tax evasion in foreign trade."
However, not all cuts may be included in the resolution, according to some sources. Last week, President Alberto Fernández warned that he would take measures to calm price hikes. "The increase could be explained by international prices, but it is also true that transferring that value to domestic prices does not have much justification. There is honestly no reason, other than the increase in consumption, to explain those increases that occurred in March and April. I am glad that Argentina exports meat but not that they make Argentines pay the price they make them pay for meat. I have watched with great concern what happened in March and April, and I am not willing to sit idly by. I am very determined to take care of the price issue and put things in order," declared the head of the state in an interview for the C5N news channel.
For the last 12 months, the general advance of prices in Argentina was 46.3%. However, meat prices have increased by 64.7% in the same period. Beef prices tend to rise in Argentina at the end of the year, at which time they traditionally begin a progressive decline. However, this year that has not occurred and the rise has been continuous until May despite the measures already taken by both the government officials and industry representatives.
Although no official report has been yet released by the government, the information regarding a halt in beef exports was leaked by members of the Consortium of Argentine Meat Exporters and stirred fury among farmers and meatpackers. Nicolas Pino, an aspiring candidate to lead the Argentine Rural Society commented on his Twitter account. "Without exports, there is no production. Once again our neighbors celebrate that we leave the door open for them to take advantage of the markets".
Argentinian beef exports have grown constantly for the last 4 years, with China, Israel, and Chile acting like main importers and according to the Chamber of Industry and Commerce of Meat and Derivatives of the Argentine Republic (CICCRA) in the first quarter of 2021 exports have started at elevated levels.
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