News Meat
Argentine beef can reopen on the world market
Argentine meat processors have reached an agreement with the national government to partially resume beef exports. The export ban was introduced by the government a month ago to curb rising beef prices. The processors feared that the ban would be extended.
Argentina is one of the world's largest beef exporters. Pricing in the country depends on export opportunities. Beef exporters therefore did not agree with the imposed export ban. After the export ban was imposed, they already indicated that the government would do better to promote growth in production in order to halt rising prices.
Preliminary agreement
A provisional agreement has now been reached on the amount that can be exported in the months of June and July. Sources report to Reuters that there is broad support for the decisions that have now been taken. In the months of June and July, exporters are allowed to export 50% of the volume that they normally export in these months.
Inflation problem
Argentina is struggling with skyrocketing inflation. In particular, the soaring beef prices in the country have now become the subject of political discussion. Beef is deeply ingrained in Argentine culture. With prices rising 60% to 70% last year, the government felt an urgency in what to do about rising prices. In the first 4 months of the year, almost 30% of the national beef production was exported to third countries.
This week, the Food and Agriculture Organization of the United Nations (FAO) warned of the global rising food prices† Commodity prices have risen across a broad front, which could lead to problems especially for residents of poor and vulnerable countries.
Steve Wissink
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