Facing declining purchasing power due to uncontrolled inflation now running above 50 percent per annum, the socialist government of the Argentine is extending export restrictions on beef through the end of October. The move is to reduce citizen discontent and unpopularity of the Fernandez Administration prior to November elections.
The Government previously limited exports of some beef cuts through the end of 2021 and placed a 50 percent cap on exports until the end of August based on volumes shipped during 2020.
In announcing the decree, the Government stated “In the short term the tool of limiting sales abroad is essential to guarantee Argentine access to beef in the face of the sharp increase in price to consumers.”
As previously reported, a ban on exports resulted in abattoirs closing with resulting unemployment, a sharp decline in wholesale prices and farmers holding their animals on pasture. In normal times, Argentina is the world’s fifth-largest beef exporter and a major supplier to China. Competing exporters including the U.S. and Brazil will benefit from the Argentine decision.