News

Argentina: Could Milei's automatic alignment with Israel and the United States complicate exports

Frozen Bone-In Beef
Meat
Argentina
Market & Price Trends
Innovation & Technology
Published Apr 16, 2024

Tridge summary

The article explores the potential repercussions of the growing conflict between Israel and Iran on global food markets, with a particular focus on beef exports. It outlines how Israel's demand for beef might decline due to societal shifts stemming from increased security measures. Additionally, it sheds light on exporters' concerns regarding the Chinese market, which has shown support for Iran and is a major destination for meat exports. The piece also discusses China's recent decision to approve new meat processing plants in countries other than Argentina, perceived as a political move linked to Argentina's relationship with the US and Israel. This, coupled with a decrease in the prices China is willing to pay for beef and the imposition of export duties, presents significant challenges for beef exporters navigating these complex geopolitical and economic landscapes.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

The escalation of the conflict between Israel and Iran would have different impacts on food markets, among which are beef, which contributes nearly 3 billion dollars a year and is currently key for livestock farming taking into account the weakness of domestic demand. Israel is the second buyer of beef in the country, last year it brought 36,264 tons for 220 million dollars, more than 5% of total exports in volume, close to 8% in value. A first reading of the latest events indicates that this conflict modified the functioning of its society, due to the security measures taken, and this could imply a lower demand for the product. The Israeli market is important in that it allows the integration of cuts from the front quarter of cattle with those exported from the hind quarter to Europe, while usually the cuts from the barbecue remain in the country. But the most worrying thing for exporters, who will have a meeting today at the Foreign Ministry, is the Chinese market, a country ...
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