With a new resolution the Argentinean National Agricultural Trade Office (ONCCA) increased restrictions faced by export meatpackers.
Export meatpackers will only be allowed to export 25% of their beef stocks, with the exception of manufacturing type beef from heavy cows, which are not usually consumed on the domestic market. These restrictions come in addition to the total monthly limit of 45,000 tons cwt that ONCCA allows the industry to export.
However, sources within the industry believe that ONCCA, in addition to further paperwork and bureaucratic measures, is not authorising exports and only five of 300 companies have received export certifications (ROE). The industry claims that there has been 85,000 tons of beef waiting to be certified since March, including several requests for Hilton quota beef.
There is increasing concern amongst Hilton quota beef exporters, as there are around 6,500 tons of this beef waiting to be certified before June, with the possibility of sanctions in the case of default. The total yearly Argentinean Hilton quota consists of 28,000 tons.
In the domestic market, cattle supply and beef stocks are scarce, as a result of the partial strike in place by cattle producers and transport entities, in protest against the recent export tax increases applied to a number of agricultural products by the local Ministry of Finance last March.
Source: Meat and Livestock Australia (MLA)