Argentina’s beef imports hit 28-year high under Milei’s economic overhaul

Argentina recorded a sharp increase in beef imports in the first half of 2025, averaging 1,033 tonnes per month — the highest level since 1997, according to official data. This growth is attributed to President Javier Milei’s monetary policies, which have made it easier to import foreign products while domestic prices remain high.

Rising imports and Milei’s policy impact

Monthly beef purchases from Brazil rose by more than 4,200% compared to the same period in 2023, jumping from 24 to 1,033 tonnes. Although the volume remains small relative to Argentina’s total monthly production of 250,000 tonnes, it signals a trend toward greater economic openness under Milei, who is working to contain inflation and strengthen the dollar’s role in the economy.

According to Diego Ponti, a meat market analyst at AZ Group, “As Argentina became more expensive in dollar terms, Brazilian beef became competitively priced.” He added, however, that imports are still limited to specific regions or business transactions between facilities owned by the same company.

Economic context and trade balance impact

Argentina’s beef imports reached their highest level since 2019, reflecting Milei’s strategy to liberalize the economy and curb inflation. Even with the recent weakening of the peso, which currently stands at around 1,360 per U.S. dollar, beef prices in Argentina remain high.

Data from AZ Group shows that Argentine slaughterhouses are paying about US$5 per kilo for live cattle, while beef exports — valued at US$3.4 billion in 2023 — are mostly destined for China. The increase in imports is an attempt to stabilize the domestic market, where beef prices in Greater Buenos Aires jumped 53% in June, far outpacing the general inflation rate of 39%, according to the National Institute of Statistics and Census (Indec).

Political and international trade implications

The rise in imports comes amid global trade tensions, particularly with the recent 50% tariff imposed by Donald Trump on Brazilian beef in the context of a broader trade war. Still, Ponti notes that “excess beef that Brazil can’t export to the U.S. will likely be redirected to China,” potentially boosting the beef market in Asia.

While Milei’s policies have helped moderate prices and increase Argentina’s international competitiveness, they have also led to a rise in cheap imports. This trend has impacted the country’s trade balance and raised concerns about the need to generate U.S. dollars to stabilize the economy and meet its obligations to the International Monetary Fund (IMF).

The Argentine peso remains relatively strong at around 1,360 per dollar, maintaining its value despite the inflationary environment. Analysts believe this scenario is likely to continue, although currency adjustments may still occur.

Ponti concludes that “the beef trade volumes are still small, but they indicate a shift in Argentina’s economic strategy, which aims to balance the domestic market and expand export opportunities.”

Source: Diário do Povo

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