Exports of beef fell again in September as a consequence of the economic crisis, which affects the demand of the various markets.
Last month, according to data released Friday by INDEC, 54,400 tons of pesos produced were exported, which meant a decrease of 5% compared to August. Foreign exchange income was $ 300 million. The drop in this case was 10%, which also explains a drop in prices per tona situation that has occurred since July, when sales of beef abroad fell by 10% in volume and 13% in value.
The decline is directly related to what is happening with the two main international product markets: China and the European Union.
In the case of China, prices fell by about 40% in relation to the highest values that occurred this year. The government of that country confirmed the continuity last week the long quarantines to control COVID in cities where cases are detected. This reduces the level of consumption of meats and other foods while at the same time the devaluation of the yuan reduces the purchasing power of importers.
In the case of the European Union, the economic crisis resulted from the rise in energy prices after the Russian invasion of Ukraine restricts consumption outside the home e redirects the income of the population, leading to a drop in the price of meatwhich is reflected in the value of the Hilton ton: this year it was sold for $ 18,000 and today it is worth 9,000 / 9,500, almost half.
The meat packaging industry has warned of this situation and called for measures to improve export competitiveness. “This context highlights the need to improve the competitiveness of local exports. There are internal regulations that complicate the implementation of business, “warned Daniel Urcía, in the latest FIFRA newsletter, the Federation of Regional Meat Processing Companies.
The industrialist considered it necessary to update “export reference prices”. He added that “also affect the delay of the exchange and the application of the export tax, of 9%“. It should be noted that the “meat dollar”, after deducting these withholdings from the official exchange rate, barely exceeds 135 pesos.
Finally, Urcía considered it necessary for the State to cancel the debts for export taxes not yet reimbursed, in particular VAT. “All of this only complicates business. Meanwhile, Our competitors, such as Uruguay and Brazil, continue to export because they have better competitive conditions and a policy to promote the inclusion of this food in international markets “has indicated.
