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Argentina wants beef export ban due to inflation
The Argentine government plans to temporarily ban beef exports. The reason for this is the continuous increase in (meat) prices in the country. Far-reaching measures are now being considered to halt the increase. The cost of living for consumers today would be nearly 50% higher than a year ago.
Although the measure has not yet been officially introduced, sources within Argentina's production and development ministry are said to have confirmed the measure to some local meat traders and a news agency. The primary aim of the measure is to curb the rise in prices. Furthermore, the measures should reduce speculation and tax evasion and improve the traceability of export flows.
Sales to export destination favorite
Argentine exporters prefer to sell produced meat to foreign parties. This trade is often more lucrative than domestic sales. Partly due to the large export flow of beef, prices have risen by 1% in 64,7 year. Normally, beef prices rise towards the end of the year to show a correction in the spring. However, this correction did not materialize this year.
Livestock farmers and meat processors angry
The measures that are now in danger of being taken have been poorly received by companies in the agri and food sectors. Some local governors also have their doubts about the plans. It is suggested, among other things, to increase production to combat inflation, not to stop exports.
The Argentine meat sector exported about 2020 tons of beef worth $897.500 billion in 2,7. Half of this size is destined for China. According to the latest figures, the export value of beef in March increased again by 8,3% to a total value of $225.8 million. A government spokesman has said he is happy with the popularity of Argentine beef, but believes that the Argentines themselves should not be presented with the bill.
Steve Wissink
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