Argentina sets new rules for beef exporters
Argentina's Agriculture and Livestock Minister Julián Domínguez has warned beef exporters that those who fail to supply the local market in accordance with the Government's plan will be banned from selling their products abroad.
“I informed them that those who do not comply with the commitments assumed with the Argentine people will not be able to continue exporting beef,” said Domínguez on Twitter.
The official mentioned that the decision was made in the context of the Ukraine war that drove global increases in food prices. Minister Dominguez added that the country has a deficit of 1.5 million head of cattle necessary to keep control of the prices in the domestic market. The news was not well received by exporters, such as Consorcio ABC. They warned Secretary of Domestic Trade Roberto Feletti and Domínguez himself earlier this week that they were not going to continue with the Cared-for Cuts supply program, which allocates 12,000 tonnes per month to the local market, with 6,000 tonnes stemming from supermarket chains and the other 6,000 tons from exporters. In January 52,000 tonnes of beef were exported and in February it amounted to 62,000 tonnes. The sources said 82% stemmed from ABC, 2.4% from the Federacion de Industrias Frigoríficas Regionales (Fifra), and 4.5% from the Union de la Industria Carnica Argentina (Unica), while 11% came from operators without a plant. So far, 27,500 tonnes have already been approved for export in March.
An agreement between the beef industry and the government was signed a few months ago in order to deliver in the domestic 6,000 tonnes of beef/month at reduced prices. According to officials from the government, meat processing units have failed to respect the deal in February, covering only 2500 tonnes. A ban on Argentine beef exports has been placed since May last year but it was significantly changed in November. Meat prices, especially for beef, have been skyrocketing since the beginning of 2021 and officials have made these decisions to limit the impact on consumption.
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