Argentina agreed with Israel on a quota to export 30,000 tons of beef

The Minister of Agriculture, Julián Domínguez, today signed an agreement with Israel for the opening of a quota of 30,000 tons per year of fresh or refrigerated beef free of tariffs. In this way, a new opportunity for trade with tariff differentials was opened up to Argentina, which is added to the already existing Hilton quotas, 481 (for Europe) and that of the United States.

During his official visit to that country, the head of the agricultural portfolio explained that the agreement allows “consolidate a strategic market for meat exports” and who institutes “a stability scheme for the marketing to Israel of high-value cuts that are essential for producers, the national meatpacking industry and for all the actors in the chain.”

As detailed in Agriculture, with this agreement Israel is committed to opening a tariff-free import quota for fresh or refrigerated beef of 30,000 tons per year. While, Argentina guarantees the availability of that maximum annual volume of fresh, refrigerated or frozen meat, for purchase by the State of Israel.

In addition, they stressed that this agreement seeks to create a stability mechanism for bilateral trade, which “will provide predictability to producers and the chain.”

Israel is one of the main destinations for Argentine meat, produced according to the kosher rite. According to data from Institute for the Promotion of Argentine Beef, in the first quarter of 2022 that country bought 9,981 tons for US$71.3 million. It was the second market in volume and value after China.

As mentioned, Argentina already has similar agreements. The beef quota destined for the United States, which consists of an annual tariff quota of 20,000 tons of boneless, fresh, chilled or frozen meat, which the Department of Agriculture (USDA) of that country granted to Argentina. Meanwhile, for the European Union there are two quotas: the “Hilton” [con animales criados a pasto] and “fee 481″ [con terminación a corral].

The Hilton It was created in 1979 and is 29,500 tons of meat cuts of high commercial value for Europe which, depending on the years, represents a business of more than US$300 million. The products are chilled boneless cuts of narrow ribeye, wide ribeye, rump, loin, buttock, loin ball, square and peceto. For its part, 481, which is also for Europe, is for beef from animals finished in the corral and that for 100 days gained 1.2 kilos per day, which has a 0 tariff.

Unlike the Hilton Quota, the 481 is not assigned in portions to each of the participating nations, but rather it is a general quota for which the qualified countries compete.

The closing of the agreement with Israel had been anticipated yesterday by the Chief of the Agriculture Cabinet, Jorge Ruiz, in the framework of the conference where the cattle stock was announced as of December 31, 2021. The official considered it as “a very good measure”. There it was reported that the national cattle rodeo it was reduced in 2021 by 101,099 head. This is the third consecutive year of decline: los 55,007,853 animals in 2018 became 54,460,799 in 2019, 53,517,534 in 2020 and finally 53,416,435 last year.

Although the fall of 2021 is a slight decrease in the stock versus 2020, according to advances in that portfolio, no changes are expected in the current export scheme where they are “managed” by the Government in follow-up with the refrigeration industry, nor modifications for seven cuts of popular consumption that cannot be sold abroad (roast with or without bone, brisket, matambre, roast lid, buttock, shoulder and empty).

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