THE Argentinean government is set to ease beef export restrictions, mainly as a result of the current increase in beef supply and low domestic beef prices.
This comes after negotiations between the local industry and Argentinean authorities.
The government has agreed to speed up the export certificate approval process, in addition to reducing meatpackers’ domestic stock requirements from 65pc previously to 30pc.
This leaves processors with the option to export the remaining 70pc of their total storage capacity once 30pc has been set aside for local distribution.
In addition, the government announced the implementation of a subsidy of 62A¢/kg for the fattening of the last 100kg of heavy animals which reach a weight over 460kg.
This last measure is expected to help lift heavy steer production to previous levels, and reduce the current high young cattle slaughter. Young cattle processing has increased as a result of the government’s support for production of lotfed light steers, and the general liquidation undergoing the industry.
The government has already relaxed restrictions this year due to the lift in supply, as exports increased 10pc in 2008-09 on the previous year to 300,093 tonnes swt.
However, shipments are still down 15pc when compared with the record 351,704 tonnes shipped in 2005-06.
During the last fiscal year, Russia continued to be Argentina’s main destination, taking 32pc of total exports, while exports to the EU
increased 36pc.
Email a friend