Argentine cattle prices that cannot be exported fall sharply, while the values charged by Brazil rise

Published 2021년 7월 6일

Tridge summary

The livestock market in Argentina is experiencing a decline, particularly in categories demanded by meat export cleaners such as canned and manufactured cows, with prices dropping by 40/50% for canned cows and 15% for consumer steers. This is due to a government export limitation aimed at controlling domestic food prices, but failing to lower food prices for consumers. The fall in farm prices harms producers and does not benefit consumers. The situation is expected to result in a significant lack of supply, potentially replaced by suppliers from Brazil, Uruguay, and New Zealand, with annual replacement an estimated 200,000 to 250,000 tons. This could lead to an annual export of less than 700,000 tons, a 30% decrease from potential exports without intervention.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The livestock market continues to be very stuck and with more than significant falls in the livestock categories demanded by the exporting meat cleaners. This is the case of canned and manufactured cows that were exported mainly to China. But the prices of steers that go to other higher-value markets, especially in Europe, also drop. It should be remembered that the meat of these bovines had as their first destination China, where 75% of the total was sent until before the 50% limitation imposed by the government on exports, under the argument that this could control the price of food in the domestic market. The measure may help curb increases in raw material before reaching the butcher's counter. What is of doubtful effectiveness is that they can lower food prices, since they are made up of a lot of other fixed costs both on an industrial and commercial level. What is being verified for now is a notable drop in farm prices, which harm the producer without benefiting the consumer. ...

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