On 31/08/21, the Argentine government has extended beef export restrictions until the end of October. Exports will remain limited to half the 2020 average.
Fernández administration said that those restrictions are an attempt to moderate skyrocketing domestic prices as according to authorities, increases in the price of meat helped boost inflation to 51.8% year-on-year in July.
Argentina is the 4th largest exporter of beef in the world with some 897,500 tons of beef and cow leather worth USD 2.7 billion in 2020, and one of its biggest consumers per capita. But poverty affects 42% of the population, and the government is trying to reduce the cost of living by implementing price controls. In May, President Fernández’s government slapped a one-month suspension on foreign meat sales. In June, it announced a progressive resumption of exports but limited to 50 percent of last year’s average monthly volumes until the end of August.
Producers reacted angrily to the news: “ideology overcomes rationality, impoverishing everyone” said by Mr Pino, leader of the La Sociedad Rural. The business chamber claimed in a recent report that meat producers had lost out on trade worth more than USD 1.084 billion since ban on exports were imposed. In reaction, a strike to stop beef supply will probably occur after primary election on next September 12.
As beef producer (7,500 heads of cattle), we don t see positively this news and we will try to complete our remaining planned cattle delivery before the strike.