RIO DE JANEIRO, BRAZIL – The Argentine Ministry of Productive Development and the Ministry of Agriculture, by joint decision, extended until October 31 the established restrictions limiting beef shipments to 50% of last year’s average value.
According to the state news agency Télam, it appeared that “the effects of the measures that temporarily restricted sales abroad are beginning to show positive results,” stressing that “after two months of validity, prices have stabilized and in various links of the chain there has even been some decline.”
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“As a result, it should be noted that the measures taken have achieved the goal of reducing price dynamics,” the two ministries said in the CR.
“Although the structural solution to the tension between the external and internal markets is linked to measures to increase production, the instrument of limiting foreign sales is essential in the short term to ensure access to beef for the Argentine population in the face of the sharp increase in consumer prices,” they said.
The government decided the limitation of beef exports in response to the drastic increase in the consumer price of this product (over 80% year-on-year) to contain the increase and reduce tensions between the domestic and foreign markets, as well as correct irregularities in the foreign business.
The two ministries have also drawn up a livestock plan to boost production to reduce these tensions.