Argentina Halts Beef Exports, Producers To Strike

Argentina’s beef sector is in turmoil after the government announced a 30-day ban on beef exports in an unorthodox move to try to contain runaway inflation which is approaching 50% annually.

Argentina’s President Alberto Fernandez told beef exporters they won’t be allowed to sell the product abroad for 30 days, according to a Production Ministry statement released late Monday. In that period, the government will determine a set of emergency measures for the sector. “The president expressed his concern over the sustained growth in domestic beef prices over the last few months,” according to a statement. The ban suggests the government is willing to sacrifice much-needed dollars from exports to appease local consumers ahead of a key midterm election later this year.

The country's four main farm groups said in a statement they would launch a nine-day halt in livestock trading starting on Thursday in protest and could take further measures.

"We are going to join together immediately to totally reject this disastrous measure," Daniel Peregrina, president of the Argentina Rural Society industry group, told the Buenos Aires Times. "The damage caused by the measure will decrease the supply of meat, making prices rise as has happened in the past."

There have been additional industry responses. Merco Press reported that the Rafaela Alimentos processing plant in Casilda, which employs 650 workers, has temporarily shut down.

Argentina, the world’s fourth-largest beef exporter, shipped out $3.37 billion in beef products and leather last year, mainly to China, Germany and Israel. Following the announcement of the beef export ban, asking prices from beef exporters rose sharply. So far in 2021, Argentine meat prices are up 22% and in the last 12 months prices are up 65%.