Suspension of Argentine meat exports may cause domino effect in the international market

Argentine President Alberto Fernández announced the suspension of meat exports from the country for 30 days to contain the sharp price rise in the domestic market – which has experienced inflation of 65% in the last year. In an interview with Radio 10 in Buenos Aires, Fernández stated that many exporters to China distort prices in the domestic market by practicing international values ​​in local markets. Mesa de Liaison, a group representing the main rural unions in Argentina, responded to Fernández’s announcement by stating that no farm will sell the product until the end of May.

For Jorge Dietrich, coordinator of the Master in Management and Marketing of Agribusiness at ESPM Porto Alegre, the scenario must be carefully monitored. “It is too early to assess the dimensions of the impasse and the Brazilian export market needs to carefully monitor the political and economic developments of the talks. If this situation persists, it will obviously have broader impacts on the market. The Argentine economy is facing difficulties and the parties involved will be pressured to resolve the problem quickly, ”he says.

If the impasse persists, Brazilian meat exporters can benefit by gaining ground in the international market. “A sudden change in the supply scenario for China can cause a domino effect and benefit Brazilian and Uruguayan producers,” he says. According to him, the importance of the impasse is due to Argentina’s weight on the international meat market. Brazil, Argentina, and Uruguay are among the world’s largest exporters of the product.

Source: Agricultural News

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