18 May 2021

2 minute read

South America

Reuters reports that the government said it would implement the emergency measure due to a "sustained increase in the price of beef in the domestic market," confirming what government and industry sources told Reuters earlier on Monday.

The government added that during the 30-day halt it would implement other measures to improve regulation of meat exports. The halt could potentially be shortened if those other measures were successful in bringing down prices.

"Exports are closed. Tomorrow we will continue negotiating with the government," an Argentine meat industry source with export body ABC said, adding the measure was the wrong move to make despite the rising prices.

Argentina is famed for its cattle ranches and sizzling cuts of steak, which are a central part of the country's social fabric, where many gatherings of families and friends are held around the "parrilla" barbecue grill at the weekend.

However, rising meat costs have come under fierce scrutiny in recent months. Some consumers - already hit hard by three straight years of recession - say they are no longer able to afford beef. Inflation has sapped growth and spending power.

Argentina has in recent years ramped up meat exports, especially to China, helping propel the sector but also stoking fears that rising exports could push up domestic prices.

The country's center-left Peronist government is looking to defend its strong position in Congress in mid-term elections at the end of the year and bolster its popularity with voters, which has taken a beating during the coronavirus pandemic. Argentina was the world's sixth-biggest beef and veal producer and the number-five exporter in 2020, according to the United States Department of Agriculture.

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Source: Reuters