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Faced with food price inflation exceeding 20 percent in 2021, the Government of Argentine has imposed a ban on export of beef for a thirty-day period. This desperation move by the socialist government would deprive Argentina of foreign exchange through exports and will impoverish cattle farmers and cost jobs in the packing industry. Observers are concerned that the thirty-day moratorium will be extended. In 2006, faced with a similar situation the Peronista government also imposed a “temporary” ban on exports that extended over nine years.
In response to the Government action the Liason Committee for Agricultural Entities announced cessation of all cattle trade, effectively a strike, for a ten-day period. Meat packing plants are closing displacing workers with the potential for further social unrest.
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Closed Abattoir in Argentina |
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 The action in Argentina impacted Marfrig of Brazil that operates in Argentina as Minerva, and representing ten percent of Marfig sales. Minerva intends supplying international customers from plants in Paraguay and Brazil. JBS S.A. of Brazil was also affected with both producers down three percent on the Bovespa on May 18th.
Argentina is a major beef exporter to China and the E.U. with sales exceeding $3.5 billion in 2020.
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