BUENOS AIRES, May 18 (NNN-AGENCIES) — Argentina, the fourth-largest exporter of beef in the world with some 819,000 tons sent abroad in 2020, suspended foreign sales for 30 days to combat price increases on the domestic market, the government said in a statement.
“As a consequence of the sustained increase of the price of beef on the domestic market, the government decided to implement a set of measures aimed at regulating the sector, restricting speculative practices and avoiding tax evasion in foreign trade. During the implementation of these measures, beef exports are limited for 30 days,” a statement from the presidency said.
President Alberto Fernandez told a major beef export association that they would not be allowed to sell the product abroad for 30 days, according to a Ministry of Production statement issued late Monday. In that period, the government will set out a series of emergency measures for the sector.
The move shows the government is willing to sacrifice much-needed dollars from exports to reassure domestic consumers ahead of major midterm elections later this year. The country’s beef exports in 2020 totaled roughly $ 3 billion, but the government may be more focused on the political cost of declining domestic consumption.
“The president expressed his concern about the steady rise in domestic beef prices in recent months,” the statement said. Discussion at the meeting also included “possible steps to curb speculative practices” and tax evasion. Some of the measures will be adopted in the coming days.
Fernandez added that the 30-day period could be shortened if the implementation of the measures leads to “positive results”, the note added.
Argentine beef exports have grown for four years and reached a record in the first two months of 2021, according to the Ciccra beef group. The suspension resembles similar policy decisions during 2003-2015 under the presidencies of Nestor Kirchner and his successor, Cristina Fernandez de Kirchner, which led livestock numbers plunged and the country lost market share in the international market.
Government last month formalized a register to provide domestic supplies of beef at affordable prices as well as to monitor home deliveries and supplies. — NNN-AGENCIES