Argentine Producers Reach Preliminary Agreement With Government To Export Beef

Argentine meat producers have reached a preliminary deal with the government that will allow them to partially resume beef exports after a month-long suspension aimed at reducing domestic food price inflation, an industry source said on June 16.

Reuters reports that Argentina, China 's second-largest supplier of beef after Brazil, suspended exports for a month in mid-May as it struggles with rapidly rising domestic food prices. Meat producers are debating a way to lift these restrictions due to concerns they could be extended.

“There is a preliminary agreement on the volume of exports. All other details are being discussed,” a source from the meat export sector with direct knowledge of the talks told Reuters. Government officials declined to comment.

Local newspaper La Nacion reported that the government has offered meat processing plants to export 50% of their usual volume during June and July. The article cited an unnamed source as saying that there was a "general consensus" on the deal.

 “This is what the state wants. It remains to be seen if it will ease those conditions,” said a second source, who asked not to be identified due to the political sensitivity of the issue.

Overall inflation in Argentina is expected to be around 50% this year. With congressional elections approaching at the end of the year, beef prices are a huge political issue in Argentina, where weekend barbecues are part of the local culture.

In the 12 months to April, meat prices in Argentina soared by 60-70%, according to official figures. In the first four months of 2021, 28.8% of the 965,286 tons of beef produced in Argentina, 76.6% went to China.