21 September 2021

Argentina - Beef export ban has helped no one

The restrictions on the export of beef from Argentina, which was due to run out on August 31, has been extended until October 31, writes The Sauer Report. The ban restricts the export of beef to 50% of the volume exported the prior year and was implemented to stop the price rises of beef for the domestic population, but it is reported to have done the opposite.
 

With export restrictions, the slaughter rates reduced, and so prices went up. Many farmers were known to be holding their cattle back from market until after the restrictions were lifted, it remains to be seen if they can hold off from sending cattle in until November. Various shoe and leather goods manufacturers are reporting that the price increases are easing, but the shortage of supply continues. 

This is due to the smaller slaughter, added to the fact that between 80-90% of the hide supply is exported in the cured state. Larger domestic tanneries report that they are now processing between 6,000 and 16,000 hides per day, well down on their capacity volumes. The latest offers of cured hides to Asian tanners are at stand on prices, although with U.S. suppliers accepting less for many selections, it is thought that Argentinian suppliers will have to give some ground to conclude any new business. 

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