Argentina suspends beef exports for 30 days

Argentina today suspended beef exports for a month. The measure affects Brazilian slaughterhouses such as Minerva Foods and Marfrig, which are among the largest exporters in the country. Minerva leads the slaughtering in Argentina.

The decision was announced on Monday, May 17, by the Argentine President Alberto Fernández, in a meeting with representatives of the slaughterhouses. “He called to talk, but he arrived with his mind already made up,” said an executive.

The Argentine newspaper “La Nación” was the first to report the suspension. To Valor, a source said that the Argentine president adopted the measure to reduce beef prices in the domestic market. Argentina suffers from high inflation.

The Fernandez government’s stance provoked irritation, but it is a déjà vu for slaughterhouses and ranchers, who suffered from severe restrictions during the government of Cristina Kirchner, the current vice president.

In the chart below that was compiled with Datamar data, it is possible to follow a history of Argentine beef exports since 2018, emphasizing Minerva and Marfrig.

Argentine Beef Exports (HS 0202) | Jan 2018 to Mar 2021 | TEU

Source: DataLiner (click here to request a Demo)

By limiting shipments, the Kirchner government discouraged livestock production leading to a reduction in the Argentine herd by 10 million head, which reduces the country’s weight in the international beef trade. “They think that nonsense applied twice will have a different result,” said a source.

The Casa Rosada’s abrupt decision also threatens to put Carneargentina’s credibility at risk again. “It is a disincentive to foreign investment. Then they complain about unemployment and hunger,” criticized the source.

For Brazilian slaughterhouses operating in Argentina, the impacts are of a different order. Of Marfrig’s total revenue, 80% of which comes from the USA, Argentines represents only 1.3%.

Source: Valor Econômico

To read the full original article, access the link below:

https://valor.globo.com/agronegocios/noticia/2021/05/17/argentina-suspende-exportacao-de-carne-bovina-por-30-dias.ghtml

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