Despite the flexibility of the stocks, why is the damage to the producer already done in Argentina

Published 2021년 10월 4일

Tridge summary

Argentina has announced the reopening of beef exports, including canned beef, to China, effective from October 4, 2021. Initially, exports of categories D and E will be permitted without restrictions, though there are uncertainties regarding the inclusion of accumulated stocks in cold storage. This decision is seen as a partial and temporary solution to the unpredictability of the ban, which was imposed following the suspension of Brazilian beef due to mad cow disease. Despite the potential loss to producers, the move is expected to have positive implications for Argentina's foreign currency earnings, given the current shortage in the meat supply market in China due to suspensions in Brazil, Australia, and Argentina. The export of other demanded cuts like Garrón and Brazuelo is valued highly, with prices soaring by 42% from last year, indicating the market's demand despite the challenges.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Popularly everyone knows the saying "better late than never". Never so appropriate to contextualize the announcements made days ago. Last week, the national government announced that it will reopen the export of canned beef to China starting today, Monday, October 4. In principle, because at the beginning of the week there was still no provision in the Official Gazette, the export of canned beef of categories D and E would be released without restrictions, lifting the ban on exporting certain cuts of them. However, until the resolution is known, there are doubts as to whether this release would include the stocks accumulated in the chambers of the exporting cold stores, of slaughtered animals after the imposition of the stocks. “Although we cannot fail to celebrate the change in position shown by this principle of flexibility, clearly the measure is still a partial and temporary correction - given that it would be in effect until December 31 - that does not resolve the underlying ...
Source: Nuestro Agro

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