Argentina suspends beef exports, UPSets US beef importers

[PORKER]

MLA [14 Mar 2006]
Argentina suspends beef exports
Argentina suspends beef exports

The Argentine government has announced the suspension of beef exports for 180 days in an effort to reduce local cattle prices. The only exceptions will be the high quality Hilton quota to the EU and some bilateral agreements, like the one with Venezuela. Export taxes applied to thermo-processed and bone-in meat have also been increased from 5% to 15%.

This latest, and most drastic, move to reduce beef costs to local consumers was sparked by a sharp rise in cattle prices last week. Average cattle prices at Argentina's principal market, Liniers in Buenos Aires, rose 16% last week, to 2.93 peso/kg lwt (A$1.30), with crossbred steers below 490kg up 19%.

The absence of Argentine beef will have some impact on international beef prices, most notably in Argentina's main markets of Russia (190,000 tonnes of fresh beef in 2005), Chile (58,000 tonnes), Israel (24,000 tonnes) and the European Union (40,000 tonnes, outside of the 26,600 tonnes Hilton quota).

The primary impact on Australia is likely to be some additional demand from the US and Canadian markets, as some Uruguayan beef exports are diverted from the US to Chile and other markets previously supplied by Argentina.

US market abuzz with Argentinian news

Until Wednesday this week, prices in the US imported beef had been drifting downward. However, news that Argentina would suspend beef exports for six months set tongues wagging in the US imported beef trade about the possible implications for beef prices and trading volumes.

Many were speculating that Uruguay could further pull back on shipments to the US in favour of exporting to some of Argentina's main markets. The immediate reaction of some market participants in the US was to pull out of some of their offerings, while others lifted prices a few cents on offers made earlier in the week. Prices ended the week steady to 0.5–2.5US¢/lb CIF either side of last week's prices. 90CL cow prices eased 2.5US¢/lb, to end Thursday's trading at 122US¢/lb CIF.

 

[PORKER]

The WORLD RED meat sales is going up big time as no one wants poultry in the world since Bird flu.Poultry consumption has dropped 75% in most cases where there is infection and the consumer is driving the price of red meat sky high.If it hits here in the states (Bird Flu) cattle could go up 50%-100% with the short supplies in the pipeline as it has happened in other countrys.

 

[Mike]

The WORLD RED meat sales is going up big time as no one wants poultry in the world since Bird flu.Poultry consumption has dropped 75% in most cases where there is infection and the consumer is driving the price of red meat sky high.If it hits here in the states (Bird Flu) cattle could go up 50%-100% with the short supplies in the pipeline as it has happened in other countrys.

I'd bet the producers price don't go up 50-100% here.

We'll have women marching with picket signs and staging boycotts like they did in 1973-1974 if retail goes up that much.

 

[PORKER]

Uruguay erodes Australia's price premium

The price differential between Uruguayan and Australian imported beef to the US has narrowed to the extent that prices were about on par with one another during February. According to the Steiner South American Meat Market Report, the premium for Australian 90CL cow beef (one of the main items in which Australia competes with Uruguay) over Uruguayan product has decreased from 6.84US¢/lb FOB (US landed) in February 2005, to 0.08US¢lb FOB in February 2006. A similar trend is evident for 85CL, 80CL, inside cap-off, outside flats and knuckles.

Although the price differential fluctuates significantly from month to month, it has been trending down since a peak in late 2004.
The foot and mouth disease situation in Brazil and the recent beef export bans imposed by Argentina has lifted demand and prices for Uruguayan beef and enticed Uruguayan exporters to shift their focus away from the US market. Statistics released last week revealed that Uruguay had reduced exports to the US during February in favour of Chile, Russia, Algeria and the EU. With less Uruguayan supplies available for the US, particularly over the short term, Australian and Uruguayan beef may continue to trade at similar levels.

 

[PORKER]

Mike,Wonder why Agman didn't pass this info on;However,

news that Argentina would suspend beef exports for six months set tongues wagging in the US imported beef trade about the possible implications for beef prices and trading volumes.

 

[PORKER]

FAO, together with Swiss experts, has been running courses for specialists from countries as far afield as Serbia, Egypt, Vietnam, Argentina, Brazil, Chile, Colombia, Mexico, Peru, Uruguay and Paraguayon BSE diagnosis, surveillance and prevention in the animal feed and meat industries.

Also vital, said Speedy, is a tracking system that allows animals to be identified all the way from birth to shopping basket. This has been adopted across Europe but has yet to be implemented partially or fully in a number of other countries.

This includes the US. Even BSE animals will change who buys beef and countrys ID system creation and tracking down to the store shelf.