Bright Future for Argentine Beef Exports

ARGENTINA - Beef exports from Argentina should be in the region of 500,000 tons for 2009, the volume however will depend, on the government policies in regard to exports.
calendar icon 11 December 2008
clock icon 2 minute read

The government has prepared a draft quota for the year 2009 and much depends on inflation and government restraints for the year, reports the Argentine BeefPackers S.A.

The government increased controls of beef exports in the first half of 2008, in order to guarantee domestic supplies, during the four month farmers strike.

While in 2008 the government did increase the beef export quota to 500,000 tons, it was followed by restrictions on the beef plants, that had to guarantee 75% of production in the plant for the domestic market.

The National Organization of Control of Agriculture Commercialization(ONCCA), administer a control of exports system known as the ROE, this is a system where the export plants have to register their proposed meat for export, with the destination, name of client, type of cut and agreed prices.

This is then considered by ONCCA, and the answer is given yes or no if the meat can be exported. As ONCCA have the daily purchases and values of all livestock purchased and the amount of meat and name of client on domestic market, the system cannot be circumnavigated or foiled in any way.

For the new year of 2009, frozen beef is expected to lead the beef exports and the Russian Federation is the main market.

This consists of block packed forequarters and hindquarters of manufacturing cows, round cuts and chuck and blade from better quality cows, not butchers quality a medium type cow with reasonable flesh covering.

Israel and Venezuela are the second largest buyers of frozen beef, forequarters for Israel and compensated sides cut to retail specification for Venezuela. The beef to Venezuela is a government oil for beef barter system of payment, the plants are then paid by the government of Argentina.

Germany remains the leading buyer of chilled Hilton quota beef, in the European Union, followed by Italy, the Netherlands and the United Kingdom.

Chile is also a very important market for fresh beef, albeit a seasonal trade from the month of September to March of each year.

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