Argentinean government increasing export control

by Editor
Friday, November 02, 2007

During September, Argentinean exports decreased 25% with respect to September 2006, and 13.7% with respect to the same month 2005.

This decrease comes after further export restrictions were imposed by the National Agricultural Trade Control Agency (ONCCA).

Restrictions on the issuance of Export Certificates (ROE) were tightened during the last weeks of August and early September. Subsequently, members of the industry and the government agreed to maintain monthly export volumes below 40,000 tonnes cwt, the government’s target (including fresh, processed beef and offal). Higher exports in July and August, together with tight cattle supply, maintained high cattle prices, heightening government concerns regards the rising domestic cost of beef.

Delays in the issuance of ROEs have also been reported in October, as the government is concerned that the forthcoming rise in summer beef demand and high export prices may further lift live cattle and beef prices.

Beef production in September decreased 13% compared with the same month 2006, due in part to a 6% fall in cattle slaughter. This decrease in production also follows the elimination of the minimum slaughter weight restrictions which increased the percentage of calves in total slaughter, sharply lowering average slaughter weights.