Argentina should lift 30-day ban on beef exports, with restrictions
Argentina is expected to allow beef exports to resume, with restrictions, after enforcing a quick 30-day ban last month.
- Argentine beef exports to resume next week, local reports show
- President Alberto Fernandez imposed a quick 30-day ban on beef exports last month to control meat prices
- Beef still exported to US and Europe during ban, analyst says
Argentine President Alberto Fernandez has put in place a 30-day ban on the export of beef, in a bid to control rising meat prices in the country, ahead of the impending national elections.
After meetings between the government and meat exporters, Argentinian media reported that beef exports would be officially allowed to resume next week, but with restrictions on export volumes.
In 2020, Argentina shipped around $ 3 billion worth of beef, mostly to China, making it one of the world’s largest beef exporters.
Meat analyst Simon Quilty said it appeared the government wanted to make sure the majority of the beef stayed in the country.
“The government said it wanted to prevent 60 percent of exports, and exporters were prepared to try to prevent 40 percent of exports,” he said.
“So this is a compromise which is being discussed and, as I understand it, 50 percent of exports will not leave and will therefore remain in the domestic market.”
Mr Quilty said if Argentina’s beef exports were cut by 50 percent, around 250,000 tonnes of beef would be taken off the world beef market.
“The biggest loser will be China, without a doubt,” he said.
“[China] received about 40,000 tonnes per month of shipments, this year which will be reduced to about 20,000 tonnes.
“This will drastically reduce the supply and be very price-friendly for [other] beef exports to the world for the remainder of this year. “
Exports to the United States and Europe, despite the ban
According to Quilty, import data suggests Argentina continued to export beef to the United States and Europe during the 30-day ban.
“So since the ban was put in place, imports to America from Argentina have been 1,250 tonnes, or 24% of this year’s imports,” he said.
“Looks like they pushed a little harder in there [North America] market [to protect its quota], simply because all other markets were closed to them, except the EU. ”