After seven years, Argentina is back again among the largest beef exporters in the world. According to the United States Department of Agriculture (USDA), last year the country exported 216,000 tons of beef. With this volume, Argentina was tenth in the ranking of largest exporters. The ninth position was held by Mexico that shipped 258,000 tons.
In its October report, the USDA has put Argentina and Mexico in a tie closing 2017 with 280,000 tons estimated to be shipped. On the other hand, data from the private sector in Argentina reveals that the sales of November and early December would already sum 300,000 tons, leaving Mexico falling behind. Of the 300,000 tons total exports, 46% are sent to China, 14% to Chile, and 11% to Germany.
In 2005, Argentina was the third largest beef exporter in the world with 770,000 tons sent that year. But exports taxes and temporary bans on exports left the country behind neighboring countries such as Brazil, Uruguay, and Paraguay.
Argentina expects to continue to have double-digit growth in 2018 with the possible opening of the U.S. market. Slaughtering this year in the South American country has grown 8.7% to 11.57 million heads.
While the fight related to biodiesel is going to the level of the World Trade Organization, the United States would open up its market for Argentinian beef until the end of the year. The Food Safety and Inspection Service had banned the entrance of Argentinian beef in 2001 after a mad cow disease outbreak. The measure would put nearly 20,000 tons of Argentinian beef in the U.S. market yearly. The revenue generated would reach US$ 100 million.
The cattle slaughtering reached 1.1 million herds in October in Argentina and reached the highest level for a month since 2013, according to the country’s Consortium of Beef Exporters. Sources say that the level of activity started to grow since the end of last year and the pace was maintained since 2017. The volume of exports accumulated over the 10 months of the year is 10.4 million herds, which is 7% more than last year. Total beef production in the period 2.3 million metric tons in the period or 5% more compared to 2015.
Official data from the Argentina’s government reveals that the country’s beef exports have risen more than expected. In September, total beef exports reached 30,000 tons. Compared to September of 2016, it is a 60% hike, when the estimate was 30%. Compared to August, there was an increase of 34% of international sales. The volume of exports acummulated over the year is 30% higher than 2016. Total exports for 2017 are now estimated at 300,000 tons – up from 280,000 tons previously.
The government of Argentina has announced this Wednesday (09.20.2017) that imports of Brazilian beef are allowed. For five years, Argentina did not import beef from Brazil after a mad-cow disease outbreak registered in Londrina, state of Paraná.
The exports of the grain and cereals complex reached a value of US$ 12.4 billion in Argentina in the first half of the year, according to official data. The volume exported in the period reached 22 million metric tons, which a fall of 12 percent compared to 2016 when 25.3 million metric tons were shipped.
In the meantime, beef exports have risen 6.8 percent to US$ 1.3 billion. In terms of volume, there was a hike of 24 percent to 168,000 tons. The number is expected to grow a lot more in the coming months because has open its market of frozen beef for Argentina.
Argentina’s agricultural exports moved US$ 10.9 billion in the first six months of the year, according to data from the Center of Cereal Exporters. During last week alone, the sector moved US$ 308.7 million. Compared what was exported in 2016, it represents 45.6 percent of the sum of the whole year.
The Brazilian version of the farm bill, called locally as Plano Safra (Crop Plan), was announced today (07.06) and the total amount available was R$ 188.3 billion (almost US$ 58 billion). The amount provided is lower than what was available during the 2016/2017 season if inflation is considered. The investment in the previous crop was R$ 185 billion.
By far, the largest percentage of the plan is put on credit subsidy programs. The total amount used in that is R$ 150 billion. Of this total, R$ 116.26 billion will be used on loans with controlled interested rates and R$ 34 billion with regular interest rates.
“We are here to reaffirm our unequivocal support to Brazilian agriculture. The farm business is synonym of efficency,” said Brazilian president Michel Temer at the lauch of the program.
By Luís Vieira
U.S. President Trump has conditioned the entrance of Argentinian biodiesel and beef into the American market.
In May, the U.S. officially announced that it suspected antidumping of Argentinian biodiesel, and it would suspend those biodiesel imports until it ends an investigation.
Separately, Argentina’s beef had a prior allowance for imports set by the Obama administration, but it is now under revision by Trump’s White House.
Read the full story at Agriculture.com
The Brazilian Real has dropped almost 40 cents comparing to the U.S. Dollar this Thursday (05.18). The dollar in Brazil is now worth R$ 3.38. The devaluation is after a political that involved a bribe between the country’s largest meat maker and packaging company, JBS, and the president of the nation, Michel Temer. Usually, when the Brazilian currency value drops, grain exports tend to grow.