The government has indicated that it could reduce withholdings on beef exports, in a scenario where cattle production stagnates. The government could reduce withholdings on beef exports by 5 points, when they are currently at 15%, and apply refunds to sales abroad. Measures, it was speculated on the field industry export refrigerators, will be announced in the coming days after the businessmen received indications in this sense at the last meeting with the Minister of Foreign Trade, Guillermo Moreno.
In 2012, meat exports amounted to 1.19 billion dollars, which meant about 180 million dollars of retention for the state. Although the precedents for this type of measure date back to April 2012, when the state reduced the retention for thermally processed beef products from 15 to 5 percent to prevent the Brazilian group JBS-Swift from closing the factory it had in Venado Tuerto. , Santa Fe, which finally closed.
In 2005, Argentina was the third exporter of meat in the world, with 771,000 tons, but seven years later, in 2012, with 183,000 tons, it moved to 11th place, and exports fell by 75%. José Fantini, general secretary of the Confederation of Meat Industry Workers, said that the reduction in retention is the “unresolved debt” of the government” and recalled that President Cristina Kirchner pledged “a year and a half ago to deal with it”.
Specialist Ignacio Iriarte pointed out that in this context production The global beef market has been stagnant for five years, compared to poultry and pork which continue to grow. Argentina is no exception and for analysts there are several factors that complement each other so that production does not grow.
One of them is the competition for the use of land “by agriculture, a phenomenon that does not occur only in our country. It is also due to the general valuation of land in the world, which makes it impossible for countries to be treated with income from livestock farming, which are worth between 15,000 and 30,000 dollars per hectare “, He said.
While he added the advancement of urbanization as is happening in China, and even land taken from cattle for the construction of highways in that country and in the United States. Rising prices of balanced feed, which “reach up to $400 per ton in China and Europe, feed formulated with imported grains and pellets.”
The stagnation of livestock production is also influenced by the aging of North American and European livestock farmers, the lack of scale, the withdrawal of subsidies for the activity in some countries due to extreme weather conditions, and the progressive liberalization of international trade, which threatens the most protected livestock production.
“It is important that the constant growth of livestock costs above any inflation index is taken and the competition of other types of meat, the so-called soilless livestock, such as pork or poultry, which convert grain into meat much better, and which require almost no space,” Iriarte said.