Argentina’s President Javier Milei has allowed ranchers to export live cattle for slaughter, ending a 52-year ban. China is the primary market, buying 70% of beef exports. U.S. beef remains more expensive due to reduced cattle herds, with U.S. inventories at their lowest since 1951. This policy change coincides with broader trade discussions under President Trump.
In a significant shift in agricultural policy, Argentine President Javier Milei announced the ability for local ranchers to export live cattle for slaughter, thus reversing a longstanding 52-year prohibition. This change, communicated by the Argentine agriculture secretariat, aims to foster greater competition in the meat and livestock sector, which aligns with Milei’s broader efforts to deregulate the economy and stimulate growth in Argentina, the second-largest economy in South America.
During 2024, Argentina exported approximately 29.4% of its beef production to various markets, an increase from the previous year. Notably, China remains the largest importer, accounting for almost 70% of Argentina’s beef exports, while other significant buyers include nations from the European Union, Israel, and the United States. In 2024, Argentina experienced a substantial rise in beef exports, totaling 935,000 metric tons, marking the highest level of exports since 1924, although this remains less than U.S. exports.
According to a USDA report, China is projected to continue as Argentina’s top beef export destination, albeit the U.S. market is anticipated to remain robust due to ongoing demand and Argentina’s competitive pricing. Current pricing trends indicate that Argentine beef costs between $2.19 and $3.11 per pound, in stark contrast to the average cost of U.S. ground beef, which stands at approximately $5.55 per pound.
The elevated prices of American beef can be attributed to reduced herd sizes among U.S. cattle farmers, as they have responded to rising operating costs by substantially decreasing herd numbers. The U.S. cattle inventory has reached its lowest point since 1951, with recent USDA data indicating a 2% drop from 2023 levels, and a further 1% decline last year.
This change in Argentine export policy coincides with ongoing discussions around agricultural tariffs, as President Donald Trump suggests imposing higher import tariffs to support American farmers facing these challenges. The evolving dynamics in beef exports between Argentina and the U.S. reflect broader competitive trends in the global agricultural market.
The shift in Argentina’s beef export policies signifies a major movement towards deregulation aimed at increasing competitive market positions in beef exports, particularly to China, which holds a substantial share of Argentine beef. Notably, as U.S. cattle inventories decline, price discrepancies are emerging, leading to increased attention on global trade and regulatory influences in the agricultural sector.
Original Source: www.newsbreak.com
