Tuesday, May 21st 2013 - 05:01 UTC

Argentina absorbs 93% of beef production, exports tumble behind Paraguay

Argentine government trade restrictions on overseas sales of beef have turned Paraguay into Mercosur third largest exporter behind Brazil and Uruguay. The first place last year belonged to Brazil with exports of 1.3 million tons; Uruguay, 350.000 tons; Paraguay, 210.00 and finally Argentina.183.000 tons.

Plenty of cheap beef for the Argentine domestic market, but for how long?

Exports have fallen from 771.000 tons in 2005 to 183.000 tons last year

The poor international performance of Argentina, once the world leading beef exporter is attributed to the measures first implemented by President Nestor Kirchner in 2006 and continued by her wife and current head of state.

To the 15% export levy imposed in 2006 must be added the closing of markets, price controls, and mandatory sale of beef to the domestic market at non profitable prices and the mechanism of rotating export permits only authorized by Domestic Commerce Secretary, Guillermo Moreno. To this must be added the monetary restrictions which in effect mean Argentine exporters receive 4 Pesos for each dollar compared to 5.25 and 8.90 Pesos in the official and parallel markets.

“Because of government intervention Argentina has lost export markets and the exporters’ sector profitability” said Ernesto Ambrosetti, economist chief from the Argentine Rural Society, SRA.

“We’ve been displaced and have lost ranking to Uruguay and Paraguay that have moved ahead of Argentina as exporters”, added Ambrosetti.

In 2005 Argentina was the world’s third largest exporter of beef with 771.000 tons. Last year the volume was down to 183.000 tons, meaning the country now ranks eleventh globally.

Uruguay and Paraguay did not experiment abrupt changes in the global ranking as happened with Argentina. Uruguay was in seventh place in 2005 and in eighth position last year. Uruguay has access to markets such as Mexico, US, China, Korea, Vietnam while in Europe it has seduced importers who purchase feedlot beef in a proportion far greater than their traditional high value Hilton quota.

Likewise Paraguay kept in 2012 its twelfth position it had back in 2005 and after an outbreak of foot and mouth disease has recovered the Russian, Chilean and Taiwan markets. However the great surprise is Brazil that back in the nineties was a net importer of beef and last year was ranked second behind Australia.

“In the case of Argentina the fall in exports is closely linked to the government’s interventionist policy, associated to the policy of sustaining the price for the domestic market at an accessible level, which meant exports were conditioned to monthly supply and domestic demand. To this must be added the lack of export competitiveness because of the cost in Pesos and the fact that the domestic market is privileged over exports” said Nieves Pascuzzi economist from SRA Economists Institute.

The poor performance of Argentina in beef exports is 100% the consequence of current government policies, said Victor Tonelli a consultant for the meat industry.

“Restrictions on exports, a non competitive foreign exchange and the fact that the meat industry for every 2.5 tons exported must sell one in the domestic market at 50% the export price, makes the whole business unprofitable”, added Tonelli.

Besides Argentina must compete with Mercosur partners Brazil, Uruguay and Paraguay where there are no taxes on beef exports.

Another interesting fact is the cattle herd. While Argentina historic average has been 57 million head of cattle, the number dropped to 48 million by 2010, and now has grown to 51.7 million. Brazil in the meantime increased its rodeo between 2005 and 2012 from 173.8 to 187 million head of cattle.

However the bright side for Argentine consumers is that annual beef per capita consumption stands at 60.7 kilos, although this is down from 69.3 kilos in 2009, according to the Argentina Chamber of meats and derivates industry and commerce, Ciccra. But it’s hard to see how sustainable the situation is.

In effect slaughter figures show that the number of cows and heifers killed have increased in the last twelve months from 39.5% to 42.3% which means the ‘the factory of calves’ is cutting down production, points out Ciccra. In volume terms beef production in Argentina during April this year was 237.000 tons, up 21.1% from the same month a year ago. Likewise the exported volume dropped 27.7% in April and 10.3% in the first four months of the year.

In other words the Argentine domestic market absorbed 93.6% of all beef production, which is the hightest percentage in 53 years. But as overall production falls and exports also, an estimated 130 slaughter plants and 15.600 jobs have disappeared.

Finally a side effect is the emergence of pseudo cooperatives that work in the margins of health and work standards, with little or no official controls, which in some areas are generating some form of supply monopoly warns Ciccra.
 

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1 LEPRecon (#) May 21st, 2013 - 06:23 am Report abuse
““Because of government intervention Argentina has lost export markets and the exporters’ sector profitability” said Ernesto Ambrosetti, economist chief from the Argentine Rural Society, SRA.”

Says it all really doesn't it? More of Cristina's 'economic' model at work: or as the rest of the world calls it: how to bankrupt your country in 10 easy steps.
2 Conqueror (#) May 21st, 2013 - 10:56 am Report abuse
It's a health and safety issue. Nobody in their right mind would eat argie beef. All those nasty chemicals and hormones!
3 TroLLey_to_Truth (#) May 21st, 2013 - 01:53 pm Report abuse
The world has switched to eating that pristine, mad-cow free British beef...

Conqueror thinks adding to 50%'s of two tests gets him 100% grade!

www.youtube.com/watch?v=LMu1JHulUUE

jajajajajaja jajajajajaja jajajajaja!
4 Troy Tempest (#) May 21st, 2013 - 03:32 pm Report abuse
Toby

It would be great if you could take advantage of the surplus (not good enough for export) beef that you're stuck with.

However, you can't freeze it for later - with an unreliable electrical supply this winter and for the foreseeable future.
5 TroLLey_to_Truth (#) May 21st, 2013 - 04:18 pm Report abuse
@4

Only in your head. Your brain has an unreliable electrical supply.
6 Captain Poppy (#) May 21st, 2013 - 04:41 pm Report abuse
WTF why are the trolls so stupid? IS Utube the only way to support a trolls POV. Really...they can't find a legitimate source......only a homegrown utube? Does anyone really watch toby's utubes.....lol?
toby.....don;t you know that most people from anywhere in the world prefer local food products, primarily meats/fish...fruits and veggies? That is the wave taking over the import/export business of food. Big chains will always import cheap shit...........but when people shop, they want local.....can you blame them?
As for quality of foods and restuarants...that's a matter of personal opinion anda preference....not fact. I've eaten great and shit food EVERY that I have been.......opinion not fact. Opinions can nver be right nor wrong.
7 TroLLey_to_Truth (#) May 21st, 2013 - 04:45 pm Report abuse
@6

Then Argentina was ahead of it's time. Good to know you approve of ending all exports of beef. Fresher meat at home.
8 ElaineB (#) May 21st, 2013 - 05:17 pm Report abuse
TTT, do you actually know the real reason Nestor's intervention ruined the beef export business? It was nothing to do with wanting the minions to eat more beef. In fact, most Argentines cannot afford the good cuts of beef, they eat the cheap cuts and offal.

One of my Argentine friends runs an abattoir. Who is allowed to get the good stuff is strictly controlled by the government and it is not the poor folks like you. (You told us all you are poor and proud of it).
9 Conqueror (#) May 21st, 2013 - 05:38 pm Report abuse
@7 “Fresh” from the laboratory. Then there's the kids that go “missing”!
10 Hands Off (#) May 21st, 2013 - 05:43 pm Report abuse
Argentina has the best and cheapest lomo in the world. It really is fantastic. Now I know why its so cheap ($9 USD).
11 briton (#) May 21st, 2013 - 06:03 pm Report abuse
93%
is this why you are so greedy grumpy and crafty

the CJD is having some effect lol.
12 Captain Poppy (#) May 21st, 2013 - 06:15 pm Report abuse
You say:

“Good to know you approve of ending all exports of beef. Fresher meat at home.”

I say:

Point out where I said that in my post? My position on this matter is irrelavant hence the reason I did not state it. But if that is your opinion AND your governments, drop the beef about beef and limons with the WTO .....no? Or do you not speak for Kirchner?

You say:

“Argentina is ahead of it's time”

I say:

Why is Argentina complaining to the WTO then? Is it possible you are out of step with your government?

Simple answers for I am a simple gringo.......thank you.

www.foxnews.com/world/2012/12/05/argentina-complains-to-wto-over-us-eu-barriers-to-trade-in-beef-lemons-and/
13 Troy Tempest (#) May 21st, 2013 - 07:46 pm Report abuse
@7TTT


Then Argentina was ahead of it's time. Good to know you approve of ending all exports of beef. Fresher meat at home.”

You need to re-think your economy - you cannot sell your products at competitive price for quality.
Organic ( locally grown and no pesticides or preservatives) and local (anti-globalisation) is the way things are going in the rest of the world.

Better step up your game.
14 CJvR (#) May 21st, 2013 - 08:30 pm Report abuse
That is quite a Mugabe they have managed to pull.
15 Anglotino (#) May 21st, 2013 - 09:01 pm Report abuse
Less competition for Australia's export and hence more export earnings for Australia.

Higher tax revenue for state and federal governments.

Higher social spending by said governments.

Better standard of living for Australians.

So decisions taken by the Argentine government have increased my standard of living.
16 Captain Poppy (#) May 21st, 2013 - 10:54 pm Report abuse
I am waiting toby......is it milk time? momma not home?
17 Troy Tempest (#) May 21st, 2013 - 11:05 pm Report abuse
16poppy

“I am waiting toby......is it milk time? momma not home?”

Poppy

We've all posted some sad truths got him, and some have asked him some awkward and uncomfortable questions.

He won't be back for awhile, he 's submerged himself in the safe fantasy world of online porn, where nobody tells him off for his 'dirty' feelings.

Maybe he NEEDS to be told that he is “a Bad Boy” ???
Maybe that's why he takes the abuse on MP???
18 Captain Poppy (#) May 22nd, 2013 - 01:01 am Report abuse
He is definitely a ticket for sure. He comes and goes into rants and rages, makes statements and his best supports is a utube video. If he really is a Mendoza maniac, life is going to get very bad in the coming months.
19 cornelius (#) May 22nd, 2013 - 01:53 am Report abuse
Who is Elaine? Is she the most stupid person in this forum? is she for real?
“The reason they stop exporting so the Argentineans can afford a better cut” What a dumb person she does not know economics 101 at all.
You are an idiot Elaine.
1- If you export more you create more jobs.
2-More jobs bring more income
3-More income means you can buy more or better meat.
4- More export more taxes .
5- Now the government can spent more and social program for the lazy bastards.

So there you have it a sustainable program for socialist bastards.

Been poor is not dignity is misery!
20 Troy Tempest (#) May 22nd, 2013 - 03:58 am Report abuse
TTT

you are “Cornelius” now???

You must have a 'sock' for every toe!!!!

Elaine is relaying the comment from the Argentinisn who owns the abbatoir,
the masses do NOT benefit from restricting exports of beef, and the only ones who get “better cuts” as a result, are the very select, wealthy few - the friends if the “K's”

TTT is the only stupid blogger on here!!
21 Ayayay (#) May 22nd, 2013 - 04:25 am Report abuse
Locavore is the big trend if you're health conscious or not, it's so big.
I've never seen an Arg food product here except for organic olive oil (good stuff)
22 TroLLey_to_Truth (#) May 22nd, 2013 - 05:05 am Report abuse
Cornelius is not a “TTT” trademark name.

You see me even in your soup, that's how traumatized I have made the argie-haters here.

BTW, Argentina does not need to export beef. The rest of the world is irrelevant as a market. Thus we don't export anymore.

As for Elaine. if the topic was extraterrestrial lesbians who won the Milky Way Lottery twice and opened a Big Foot rehab center run by hobbits... she would come here and state that she knows an extraterrestrial lesbian who wone the Milky Way lottery twice and opened a Big Foot rehab center run by hobbits that closed down because of CFK.

Just the way it is.
23 Troy Tempest (#) May 22nd, 2013 - 06:06 am Report abuse
@22TTT

“BTW, Argentina does not need to export beef. The rest of the world is irrelevant as a market. Thus we don't export anymore.”

If “Cornelius” is NOT a TTT 'sock', then you are more stupid than he is.

At least “Cornelius” recognises that exports of any kind are important to Argentina's economy.

YOU, Teen Toby, insist that the opposite is true. LOL !!!

We'll all quote you later on. The world will pass you by, but you can watch us on the net.

Get used to living vicariously - we'll be DOING things and building lives for ourselves while stagnate and sit embittered I front of a monitor.

Have fun.

Peso 10/1 to the USD very soon, and 16/1 by the end of the year.

I hope you like cheap sausage.

:-)
24 Anglotino (#) May 22nd, 2013 - 07:40 am Report abuse
Who hates argies other than Conqueror and Think?
25 Captain Poppy (#) May 22nd, 2013 - 09:16 am Report abuse
#19 The hole in your theory is the way that Argentina is increasing exports. They accomplish a net trade surplus by restricting imports. Ultimately the rest of the world starts playing tit for tat and the results in what is now happening, scarcity of products, high inflation, lose on industrial sector jobs........exactly what is going on at this very moment in Argentina.
Toby, Anglotino is correct that few hate Argentine's outright in the forum. I would go as far to say that I outright hate the kirchnites. But the people of Argentina........not in the slightest. I've said it over and over here, I have not had a bad experience in all my trips to Argentina. ANd yes, that includes restaurants and the people.....cannot say the same for buses and taxis. I think you need to stop feeling the world hates you. They are fighting Argentina for they policies, but hardly hate people in general. I suggest you see a shrink.
26 ElaineB (#) May 22nd, 2013 - 11:21 am Report abuse
@19 Who are you quoting? Try reading my post again. I stated “It was nothing to do with wanting the minions to eat more beef. In fact, most Argentines cannot afford the good cuts of beef, they eat the cheap cuts and offal”. Nestor was intent on destroying the farming industry as he saw it as the enemy. He taxed them to the hilt in the short-term ruining the exports in the long term.

Please forward your comments :

1- If you export more you create more jobs.
2-More jobs bring more income
3-More income means you can buy more or better meat.
4- More export more taxes .
5- Now the government can spent more and social program for the lazy bastards.

to the K's because they don't have a clue.

TTT, you just cannot stand that I know your country well enough to dispute your silly fantasy. If you got out more you would meet people too.
27 yankeeboy (#) May 22nd, 2013 - 12:18 pm Report abuse
25. Except the trade balance is quickly turning from positive to negative with no reserves to support the deficit.
The BCRA reserves are falling this time of year is catastrophic. This is usually when they are building them to use to buy fuel over the next year.
But they're not growing
and the fuel bill is

The Ks have just about destroyed every large business in Argentina. I wonder if the population will wise up before they are in a full blown crisis.
Probably not
28 Captain Poppy (#) May 22nd, 2013 - 01:48 pm Report abuse
I expect them to see the first deficit this mont. I am looking forward to seeing these numbers reported.
29 Pete Bog (#) May 24th, 2013 - 09:32 pm Report abuse
If Maximo emigrated the consumption would fall to 63% of local meat consumed.
Has his airline bought him that C-17 yet?

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