MercoPress. South Atlantic News Agency

Uruguayan meat exports surpass Argentina's thanks to restrictions

The last time Uruguay's meat exports exceeded Argentina's was in April 2018

Restrictions on meat exports imposed on producers by the Argentine administration of President Alberto Fernández, in a failed attempt to curb domestic prices, have led the country to lose ground to Uruguayan and Paraguayan competitors, Infobae reported Wednesday.

In fact, Uruguay has once again surpassed Argentina, as it happened in April 2018, while according to commercial reports, Paraguay is also gaining ground in the market.

Fernández's measures became opportunities for other countries that increased their sales abroad, such as Paraguay and especially Uruguay.

According to Juan Manuel Garzón of the Fundación Ieral-Mediterránea, Uruguay exported more meat than Argentina last month, as per data provided by the National Meat Institute of Uruguay (INAC), which showed that exports reached 37,939 tons, compared to 36,113 tons of bone-in meat from Argentina.

In July 2020, according to a report by the Argentine Institute for the Promotion of Meat (IPCVA), the country had exported 53,747 tons compared to Uruguay's 22,535.

In April 2018, Uruguay exported 25,722 tons compared to 25,144 tons from Argentina.

Meanwhile, the National Service for Animal Quality and Health of Paraguay (Senacsa) reported that in the first seven months of this year, beef exports reached 211,650 tons, in addition to 38.2 million kilos of giblets.

“Beef is the star and is consolidated as the country brand product, with revenues of over US $ 700 million, including offal. The prospects are better considering the restrictions imposed by Argentina on its exports by the Government of Alberto Fernández,” said a Paraguayan publication quoted by Infobae.

Argentine beef exports are currently limited to 50% of the volume registered in the second half of last year, a mechanism that expires on August 31.

Therefore, the Argentine government will have to decide on the matter before the upcoming open primary elections when, according to most polls, it will receive a blow of unforeseen proportions.

The options are to lift all restrictions and free up international trade as requested by local meat producers, or to stick to some kind of restriction. There is also a ban on exporting 7 popular cuts in effect until December 31.

Cuts of beef marketed to the European Union through the Hilton Quota, the 481 Quota and the 20,000 tons per year quota granted to the United States are outside the restrictions.

The Government has also released the list of exporters qualified to access the quota of 3,500 tons per month of kosher meat destined for Israel, one of the largest foreign buyers that Argentina has, only surpassed by China.