The government of Argentina is planning on cutting back its beef exports, in an effort to mitigate runaway inflation that is expected to hit 50% annually.
According to Bloomberg, which cited Argentinian newspaper La Nacion, the country’s government, led by President Alberto Fernandez, has instructed a major beef export association to cease selling beef products to international destinations for 30 days. The time period will give the government additional time to come up with a new set of emergency measures for the sector that is experiencing a rapid bout of inflation.
The latest measure suggests that Argentina’s government is willing to forego much-needed revenue from exports in order to appeal to the country’s local consumers ahead of a major midterm election slated for later this year. In 2020, Argentina’s beef exports totalled approximately $3 billion; however, it appears that Fernandez’s government may be more focused on the significant political cost of declining domestic beef consumption.
According to a statement released by Argentina’s Production Ministry, the president is seriously concerned over the country’s continued growth in domestic beef prices over the past several months. The government is in the midst of determining an appropriate step forward, which may include restrictions on speculative practices or fiscal evasion.
The president noted that the 30-day suspension period could be reduced in the event that the measures deem successful in mitigating runaway beef prices. Argentina’s beef exports were sent soaring over the past four years, and reached a new record-high in 2021, according to beef group Ciccra. Last month, the government established a new registry that would maintain the country’s domestic beef supplies at accessible prices for consumers.
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