Effect of official restrictions: last October, beef exports fell more than 30% year-on-year

Beef exports fell last October.

Last month there was a sharp drop in beef exports, while the Government advances with restriction measures until December 31 next and the Secretary of Domestic Trade, Roberto Feletti, threatens to increase withholdings. A situation that generated a new intersection with the countryside and internal problems in the national administration. Meanwhile, the presidential spokeswoman Gabriela Cerruti announced today that in the next few hours the Government will adopt new measures to contain the increases in the price of meat.

According to data from the Argentine Beef Promotion Institute (IPCVA), during the tenth month of this year, exports fell 25.1% compared to last September and 30.9% compared to October last year. Between chilled and frozen cuts and processed meat, Argentina sold some 33,638 tonnes of product weight to the world, which is equivalent to 50,500 tonnes of beef with bone.

The aforementioned drop in October is added to those registered during June and July, at a time when the Government is applying a quota system for meat exports, which, according to the Minister of Agriculture, Julián Domínguez, will continue until the end of the year. The meat marketing plan to the world for 2022 will be announced early next month.

In this way, in the first 10 months of the year, exports totaled 479,890 tons of product weight, which meant a 4.3% retraction compared to the same period of the previous year, that is, about 21,400 tons less. Of that diminished volume, about 14,100 tons correspond to lower shipments to China and another 11,600 tons correspond to Russia, while the rest of the destinations together accumulate an expansion equivalent to about 4,300 tons, the agency’s report detailed.

Detail of beef exports. (Source IPCVA)

As for the income of dollars from external sales, the opposite is true. Not only is there not a drop, but there is an expansion of 0.7% in value, according to the IPCVA records. Thus, in the January-October period, Argentina received USD 2,267,024 million compared to USD 2,250,578 million. This means that they entered a little more than USD 17 million than last year, basically due to a rise in international prices, which show an average increase of 46.3%. This improvement in international prices was also reflected last October, as they increased 43% compared to October last year with an average value of $ 5,777 per ton.

Destinations and fees

As has been the case for several years, China is comfortably the main destination for Argentine meat, despite being the destination most affected by the export stocks. In the first ten months, it absorbed 356,500 tons of product weight, which represented 74.3% of the total shipped by the country. In value, the Asian giant was also the main destination, with sales of USD 1,352,577 million, accounting for 59.7% of the shipments. In any case, this volume represents a 3.2% drop compared to last year.

In second place was Chile. In the analyzed period, it registered purchases of 28,300 tons, showing a growth of 11% and in third place Israel was positioned, with 26,200 tons. Regarding the value of the foreign currency entered, Germany ranked as the second most important destination in Argentina, with exports for USD 190 million, reaching an increase of 6.4%, followed by the trans-Andean country, with US $ 181 million, and growing in the year-on-year comparison 26%

On the other hand, if the origin of the income of USD 240.9 million in October is broken down, about 31.4% came in the chilled cuts without bone, the tariff position that includes the products with the highest unit value, among them the Hilton cuts. Likewise, frozen boneless cuts contributed 61.0% and frozen bones, which are turned over to the Chinese market, had a 7.5% share.

Compared with the external sales of October 2020, the value of the shipments corresponding to the tariff positions of chilled meat without bone was 38.2% higher; on the other hand, in the case of frozen boneless meat, there was a year-on-year fall of close to 13.9%.

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