They will stop meat exports from refrigerators that do not comply with price agreements

“I have just finished the meeting with the ABC Consortium. I informed them that those who do not respect the commitments made with the Argentines will not be able to continue exporting meat “, the Minister of Agriculture said last March, Julian Dominguez, after a meeting with that chamber of meat exporters. At that time, the official had received refrigerators announcing that he could not continue to comply with the schedule Manicured cuts. The exporters backtracked after official pressure, along with an injunction from Roberto Feletti’s Internal Trade Secretary, and continued with the official plan. The government has launched its threat, which now results in a resolution.

According to the joint resolution 4 of the Ministry of Agriculture and the Ministry of Productive Development, now known in the Official Gazette, The agricultural portfolio led by Julián Domínguez will in fact be able to stop any export of meat until the Ministry of Internal Trade communicates that the commitments with the government in terms of supply and price agreements have not been respected.

In April 2021, a joint regulation by both ministries created the Affidavits of Meat Export Operations (DJEC). From the start, rural entities warned that this mechanism would eventually serve to control overseas sales.

Strictly speaking, today’s resolution affirms this “The Ministry of Internal Trade will inform the National Directorate of Agricultural Commercial Control of the violations, within the scope of its competences, of the price agreements and / or regulations applicable to the beef industry identified by the obliged subjects pursuant to Article 1 of the aforementioned Joint Resolution no. RESFC-2021-3-APN-MAGYP [es la norma que creó las DJEC]”.

Then add: “The National Directorate for the Control of Agricultural Trade will observe the affidavits of the meat export operations (DJEC) as reported by the aforementioned Internal Trade Secretariat until it communicates that the regulated bodies have complied with the applicable regime”.

According to what they said in Agriculture to this vehicle last March, regarding a commitment of 6,000 tons per month to supply exporters to the domestic market, “In February they filled 2,500 tons, 40%”.

The resolution speaks of the word “will observe” for something that could in fact be a brake on foreign sales until compliance with the agreements is verified.

The government uses the war between as an excuse Russia and Ukraine to justify the measure, in addition to the increase in international prices. In other words, instead of seeing more exports and more dollars coming in as an opportunity, he sees prices as an issue.

“The armed conflict in the Black Sea region (Ukraine-Russian Federation) adds greater risks to food security as it significantly affects the global supply of food products and generates international price increases”, the regulations say. He points out that the FAO meat price index recorded an average of 112.8 points, “this is 1.1% more than the previous month and 15.3% more than in February 2021”. He adds that “international beef prices hit a new record in February, driven by strong global import demand.”

It is worth remembering that, although in the first two months of the year beef exports in volume decreased by 9.7%, In value, there was a significant increase of 23.5% over the same period in 2021 and they have amassed nearly $ 500 million.. Precisely because of the improvement in international prices, which comes before the war in Ukraine which began on February 24th. Last February, the average export value was 37.8% higher than that recorded in the same month of 2021.

For exporters it is a new control of the activity after the 2021 stocks for sale abroad and the ban on seven popular cuts that they continue to be unable to place abroad. In practice there is a trade managed by Agriculture.

After exporting refrigerators tried to remove Care Cuts last March, Internal Commerce yesterday reported the renewal of that program with seven cuts found in supermarkets.

As indicated, for the new phase, which will last until July 7, “the values ​​of the cuts will be (per kilo): roast $ 679, blank $ 815, matambre $ 810, skirt $ 449, lid roast $ 679, glute $ 859 and shoulder $ 699. In this case, the cuts have an average increase pattern of 2.8% for the first month. In addition, the roast and the skirt keep the same price as in the previous phase “.

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