Ebene News – AU – Argentina puts immediate ban on beef exports and China will feel it

Argentina announced an instant 30-day ban on all beef exports and the decision has ramifications for world trade

Argentina, one of the world’s largest beef exporters, moved around $ 3 billion worth of product in 2020, mostly to China

Independent analyst Simon Quilty, said the ban appeared to be driven by upcoming national elections and a desire to lower domestic meat prices

“[Argentina has] seen soaring beef prices as well as inflation so the government is feeling the pressure and it is necessary to try to win back the voter, “he said.

President Alberto Fernandez reportedly told a beef export association that “emergency measures” would be drawn up for the sector

“The president has expressed concern over the sustained growth in domestic beef prices in recent months,” according to a statement released by Bloomberg

Argentina exported around 750,000 tonnes of beef last year, 68% of which went to China

“[China] is their biggest market – as of March, they accounted for 22% of that market share,” M said. Quilty

“Without Argentina participating in exports to China, we can expect a quick response from China – which will really need meat, especially beef – and I expect prices to rise. inquiries and prices in China accordingly”

When asked which nations are best placed to close the gap, Mr. Quilty said China would face a “real challenge”

“Brazil’s exports are down dramatically, Australian beef exports are down, they will look to North America, but they won’t be able to buy cheap lean beef [from the US]” , did he declare

“So at the moment it looks like New Zealand is one of the only sights in town, so to speak”

M Quilty said Argentina was in good shape with such announcements, including a 15-day ban in 2014, which he said didn’t help much

But he said global beef supplies were already tight and the announcement would have significant ramifications

“I think there will be a real shortage of lean beef around the world over the next 12-24 months,” he said.

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Exports, Argentina, inflation, beef

Ebene News – AU – Argentina puts immediate ban on beef exports and China will feel it

Source: https://www.abc.net.au/news/rural/2021-05-18/argentina-places-snap-30-day-ban-on-beef-exports/100147320