MercoPress. South Atlantic News Agency

Kirchner urges: don't buy beef!

President Nestor Kirchner urged Argentines Tuesday do not buy beef if prices continue to climb and said he wouldn't hesitate to extend to a full year a six-month ban on beef exports by the world's five largest producer

Kirchner's comments and the export ban are part a broader effort to curb inflation in this South American country. The center-left leader recently struck pricing accords with sectors ranging from supermarkets to dairy producers and even pharmaceutical makers.

Kirchner told Argentines on Tuesday to "buy less beef if they don't lower the price" in allusion to beef industry prices he is attempting to control.

"Let's make them feel the power of the consumer so they don't sell at whatever prices they want," he added of recent 8 percent increases in meat prices at supermarkets and butcher shops.

Argentina's annual inflation rate was 12 percent last year, and the government is targeting inflation of between 8 percent and 11 percent for 2006. But some independent economists believe inflation could be higher and rising meat prices have become a major concern.

Last week, Kirchner announced the 180-day suspension on virtually all beef exports by the world's fifth-largest producing nation and key supplier to such consumer markets as Russia and the European Union. Only a small percentage of so-called "Hilton Quota" fine steak cuts were exempted along with some meat covered by other existing agreements.

"I'm going to be firm with shutting off exports, and if I have to set it at 180 days or 360 days, I'll do it," Kirchner warned on Tuesday. He gave no specifics.

Last Friday, the 180-day suspension took effect. Economy Minister Felisa Miceli signed a resolution restricting exports on 13 categories of beef products.

Argentina exported nearly 600,000 metric tons of beef to more than 80 countries last year for $1.4 billion (euro1.17 billion).

Russia, the European Union and several South American countries have been key markets for Argentine beef exporters.

The government has said its move to ban most beef exports is intended to prevent international demand from making beef too expensive for Argentines.

For a country of meat eaters and meat exporters, the rising price of beef brought on by recent spikes in the price of live cattle has been particularly vexing. Argentines consume some 65 kilos (140 pounds) per person a year, one of the highest rates in the world.

Following a 2002 financial crisis that slashed the purchasing power of Argentines overnight, South America's second-largest economy began growing again three years ago. But the jobless rate remains stuck above 10 percent and many Argentines complain rising prices are increasingly putting goods out of reach.