MercoPress. South Atlantic News Agency

To check inflation Argentina bans beef exports

The Argentine government announced the “emergency” suspension of beef exports for 180 days in an effort to contain soaring prices in the domestic market

Economy Minister Felisa Miceli said the export ban was "geared to facilitate an equilibrium between domestic supply and domestic demand" for beef, which is a staple produce in the Argentine diet.

"Of course, we are going to continue honouring export contracts, such as the Hilton quota and country-to-country agreements, but these account for a small portion of total exports", Miceli pointed out. The European Union "Hilton" quota refers to top-quality stake cuts.

"The rest, some 600,000 tons of beef, will find their way to the domestic market. This is the best way to safeguard people's pockets", insisted Ms Miceli.

Argentina is the world's third-largest beef exporter behind Brazil and Australia, with sales having reached 1.4 billion US dollars in 2005.

Miceli added the Ministry would closely monitor price trends and domestic demand to "determine the resumption of exports sometime in the period we have announced".

The President Kirchner administration is worried with the surge in inflation which last year ranged 12%, far above the original estimate, and last January reached 1.3%. The government has forced several food sectors and public utilities to accept "voluntary" price caps to help contain inflation.

This was particularly evident last February when the consumer price index rose 0.4% but the basic food basket which signals the line between poverty and indigence surged 1.1% as well as wholesale prices which climbed 1.4%.

Analysts also point out that February is not necessarily a reliable index since the big push of prices occurs in December/January and again in March, when the schooling year begins in the southern hemisphere.

In its determination to keep the Argentine economy booming at 8/9% and reducing two digits unemployment, the government