To control inflation, Argentina extends restrictions

The Argentine government decided to extend the restrictions on meat exports until October 31, through the Ministries of Productive Development and Agriculture. The measure extends the validity of decree 408/2021, from June this year, which limits the shipment of beef to 50% compared to the average export last year.

Published on Tuesday (31), the resolution states that “the impact of the measures that temporarily limited sales abroad began to show positive results”, which is reflected in a stabilization of beef prices after two months of validity of the decree.

The text highlights that inflation occurs due to “increase in meat prices in the international market, which implies pressure on prices in the domestic market due to its condition as a tradable good.”

“Nevertheless, in recent years, there has been a remarkable leap in exports that has not been matched to the same magnitude by production,” the text continues, “resulting in a shortage in the local market, which ended up putting pressure on beef retail prices. and affecting internal consumption.”

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Indicators point to a fall in prices in the last month after a sequence of increases for Argentine consumers this year: growth of 7.3% in March, 3.5% in April, 5.9% in May and 7.9% in June. According to the Argentine Political Economy Center (CEPA), the prices of the most economical cuts decreased 2% in July compared to June, while intermediate and more expensive values ​​fell 1%.

Ruralists speak of “disease”

The industrial beef sector focused on the call Link table it manifested itself hours after the publication of the resolution in the Official Bulletin, affirming its position against the restrictions. “We are not going to maintain such a negotiable or passive posture,” said the president of the Argentine Rural Confederations, Jorge Chemes, at a press conference. “We have moved on to a more active stage where we do not have established actions, but we will undoubtedly show the malaise that exists in the field,” he said, indicating the possibility of a stoppage in sales and protests in view of what he considers to be a “major error of the government”.

Last week, the so-called Meat Table had already asked the national government to “rethink and end export restrictions.”

The government reinforced the decision to implement a Livestock Plan to increase production. The Minister of Agriculture, Luis Basterra, stated that they are evaluating possibilities of easing beef export restrictions.

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“We are in the middle of the process of resolving very strong irregularities that occurred in the livestock system, a speculative and criminal component, financial transactions that made the meat serve as an instrument for speculation, which generated an overheating of the market,” said the minister .

Official sources ensure that exports continue to exceed the historical average, according to Agência Télam. In July, US$ 194 million (about R$ 1 billion) in beef were exported in the country, although the figure is 16% below the same period last year.

*With information from Télam and Page 12

Edition: Thales Schmidt

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