Argentines Feel Impact of High Inflation Rate as Meat Prices and Exports See Major Changes

A butcher cuts meat in a market, as Argentines feel the impact of a high inflation rate (Reuters)

The National Agri-Food Health and Quality Service (SENASA) enabled as of today, the first day of 2024, the procedures to allow the export of all cuts of beef, whether fresh, chilled or frozen after the regulations lost validity. which was opportunely established by the government of Alberto Fernández through Decree 911/21, which prohibited the shipments of roast, vacuum, skirt, matambre, roast tapa, buttock and shoulder, called “popular cuts”, among others.

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The differentiation for the export of cows of categories D and E and bulls, better known as “Chinese Cow”, animals that were never consumed in the domestic market and that are part of the gastronomic taste of the Asian consumer, will also cease to have effect. In addition, whole cattle, half cattle, front quarter with bone, hind quarter with bone, incomplete half cattle with bone and incomplete front quarters with bone may be sent abroad.

Decree 911 came into force as of January 2022 and was in force until December 31, 2023. Therefore, with the expiration of the rule, SENASA ordered the updating of the procedures to allow the export of all types of meat cuts. cattle. The phytosanitary authorities also proceeded to adapt the veterinary inspection services and computer systems to the new conditions, particularly the export certification system, which came into effect today.

The increase in the price of meat has always been a problem for successive Peronist and Kirchnerist governments throughout history and the Presidency of Alberto Fernández was no exception and resorted to a common tool: restricting or prohibiting exports of different cuts. to contain or push back the values ​​of the public to take care of the “Argentines’ table.”

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Thus, after a significant increase in prices, the Fernández Administration closed the export of beef in May 2021 and then proceeded to implement a quota and prohibition system to export certain cuts until the end of its mandate, a measure that It was totally criticized and rejected by the sector.

Likewise, it should be remembered that it was Matías Kulfas himself, then Minister of Productive Development, who reported that only a volume of up to 50 percent of the average exports for 2020 was allowed to be exported.

Argentina is one of the world’s largest consumers of beef per inhabitant, with 45 kilos annually, and, at the same time, it is the fifth largest producer and fourth largest exporter of the product in the world (EFE)

These limitations did not extend to the tariff quotas, that is, the Hilton, the 481 or shipping to the United States, nor did they stop shipments under the kosher protocol sent to Israel. Thus, for months it was possible to promote sales that were around 150 million dollars per month, however, an external market worth another 100 million was affected.

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Before any restrictions, the export of beef during 2020 was one million tons, a figure that showed a year-on-year growth of 10%. This represented a business of about USD 3,126 million and 8% of the foreign sales made by the agroindustrial sector. There, Argentina produced about 3.2 million tons of beef, and almost a similar number of chicken and pork.

With exports restricted, FADA’s chief economist, David Miazzo, told Infobae that the loss for the meat exporting sector was 100 million dollars per month due to the official imposition of stopping shipments. Since as of June 2021, 42% of Argentine foreign meat trade was closed.

Mario Ravettino, president of the ABC Consortium, stated that beef exports during 2023 concluded with “a good year in volume, with sales abroad of about 920 thousand tons of bone-in beef, which is an important number. The volume obtained is slightly higher by 5% than that registered in 2022.”

Likewise, the benchmark for the exporting refrigerators segment concludes “a very lean year in foreign exchange earnings, since the values ​​offered by the international market are low: this is how sales abroad for 2,730 million will be finalized in 2023. of dollars”.

Ravettino assured that the sector “maintains expectations (of improving) the volume in 2024” after having been notified days ago from the official sphere of “the culmination of the decree prohibiting the export of the seven cuts, and also of the declarations export offices and the Price Observatory, and all the obstacles that the sector had.”

2024-01-01 16:59:00
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