The world’s number five beef exporter, Argentina, slammed the brakes on beef exports in mid-May.
Why? The country’s Agroindustrial Council suspended exports for one month with intentions to lower domestic inflation. Beef exports in Argentina have gone sky-high in recent years, and the government blames exports for the crazy inflation.
To the moon. So far, inflation is up nearly 50%. And the fear from the Argentinian government is that’s just the start…
But inflation is nothing new for the South American nation. This is their third consecutive year in a recession. During the first quarter of 2021, consumers watched their prices shoot up 17.6%. Many say they have no money left to purchase the expensive protein source.
And back on the farm… Farmers aren’t thrilled, to say the least. To argue the government’s temporary kibosh on exports, farmers held a livestock sale strike that lasted through June 2, forcing processing plant closures across the country. And they’re prepared for more: farmers have threatened a grain sale strike next.
Where this goes: Producers are upset their export market is temporarily MIA. Plus, countries worldwide will feel the pinch: China, for example, imports more than two-thirds of Argentina’s beef, and will have to find somewhere else to fulfill its demand.