Brazil and World
Argentina may reduce beef exports
The current government of Argentina announced the reinstatement of a meat export registration system from 2008-2015. According to the public administration, the measure aims to improve the monitoring of meat exports and the supply of the domestic market.
Just like what happened in that period, shipments to other countries may suffer a decline in the coming months and, in a note released by Argentine rural organizations, the agricultural sector was against the measure. "We express our most absolute rejection of the reinstatement of the export registry, in this case for meat, and other interventionist measures. Behind these measures hides the mistaken view that the generalized rise in prices responds to the fact that the food market presents tensions between exports and the domestic market."
In recent years, Argentina has become one of China's largest beef suppliers. More than 75% of the protein exported by the South American country was sent to the Chinese. From January 2019 to January 2021, more than 1.5 million tons were exported by Argentina to the world. At the same time, domestic consumption is decreasing due to high prices and changing culinary habits. For the next 10 years, beef consumption is expected to drop from the current level of 50 kg to 40 kg per person. 90% of the gap will be captured by pork, according to experts.
“Latin American countries have a tradition of quality and are known as major global suppliers of beef. And, even with the forecast of reduced exports from Argentina, we still have other important producers in this region, such as Brazil, Uruguay and Paraguay. We have excellent partnerships that will guarantee the supply of consumer markets”, explains Matias Hees, commercial director at KITGarra.
Brazil and World
Booming market and reduced animal supply support beef price
Beef prices remain heated in Brazil and, according to a Farmnews survey, from January 1st to June 10th this year the average price was R$ 306.6 per arroba, a result 53.2% higher than observed in the same period of 2020 (R$ 200.2).