By Garra - 27/08/2021 in Beef

Beef: Rabobank believes Argentine restrictions to continue until December

The world’s fifth major beef exporter in 2020, Argentina can reduce the production of the protein by up to 5% this year. This is an estimate by Rabobank, which has analyzed the limitations imposed by the country’s government in June in relation to the volumes and types of beef that could be exported by the country.

Initially, Argentina suspended its shipments for 30 days in May and now, with the new quotas, volumes are limited to 50% of the monthly average volume that was exported from July to December 2020. At the end of this month, the measure should be revised, but it may be extended up to December this year and it will have impacts on the global market.

According to the analyst in Animal Protein at Rabobank, Angus Gidley-Baird, there are some possible scenarios for Argentine beef exports this year and the most likely is to continue with the 50% reduction in exported volumes, at all destinations, with the exception of China, the United States, the European Union and Israel, until December 2021, which should reduce shipments from the country by 9.5%.

Shipping restrictions, according to Rabobank, may reduce Argentine beef production by 4% or 5% this year, favoring markets such as Brazil and Uruguay in this protein exports.

Compared to May, Brazilian beef exports to China increased 22% in June and in July another 11% increase was registered, with 91,000 tons shipped. Uruguay, which also exports beef to Argentina, increased shipments to China and Israel, and for the first one the growth was 45% in the first half, totaling about 146,000 tons, and for the Israelis the increase was 83.6%, with 8.2 thousand tons.

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