Direct beef price subsidies considered in Argentina

by Editor
Tuesday, March 25, 2008

The Argentine government is now considering a subsidy for beef sold by slaughterhouses in order to reduce domestic beef prices.

This follows the beef industry’s rejection of proposed price caps. The government has threatening to cut beef exports by a further 40% if no other measures are agreed – according to the Brazilian Meat Monitor.

Under the subsidy proposal, butchers are to pay a fixed value for beef to the slaughterhouses, below the 8 pesos ($2.54)/kg they are now paying.

The government would compensate the slaughterhouses for the lower price, preventing a further increase in beef price being charged to consumers.

The proposal was made to the government by the slaughterhouses, and has been approved by the secretary for Economic Planning.