Argentina beef exports increased this year

Lead: Buenos Aires, Argentina, August 14 (Reuters): due to the effective control of foot-and-mouth disease and the lifting of import ban on its beef in the main export market of domestic beef, Argentine beef exports increased steadily in the first five months of 2002 Ciccra, a local beef industry group, said Argentina shipped $137.9 million worth of beef with bones in the first five months of this year, up 2.4% year-on-year, excluding cooked products The main buyer of Argentine beef is the European Union, which accounts for 63% of its exports Germany is the biggest buyer in the EU Since June, the price of high-grade beef under the Hilton quota for transportation to the EU has risen by $3500 per metric ton to $6500 Ciccra forecasts it will continue to rise, "if supply continues to stabilize, it is expected to rise to $8000 per metric ton by the end of the year In June, the European Union approved an increase of 10000 metric tons in the number of Hilton quotas The increased total is 38000 metric tons, valid from 1 July 2002 to 30 June 2003 Argentina, the second largest beef producer in South America, has been in recession for four consecutive years The government hopes that January's devaluation will enhance the competitiveness of its products, increase exports and help restore the economy The outbreak of foot-and-mouth disease in March last year led to a reduction in meat production and an import ban on the famous grass fed cattle in Argentina's main beef export market, which prevented Argentina from fully using the quota After large-scale vaccination, the epidemic was finally under control In February, the European Union lifted its ban on Argentine beef Despite the decline in domestic consumption, the reopening of major markets and the enhancement of export competitiveness have given Argentine farmers much-needed impetus Since February, the peso has fallen about 70% against the dollar Since corn and oilseeds have been sold in the world market in dollars, the devaluation has led to a sharp rise in the price of the grain peso This increases the cost of beef cattle Despite the devaluation of the peso, cattle prices have risen steadily In July last year, the wholesale price of trading with Peso increased by 83.4%, which led to a decrease in supermarket meat sales and a rise in prices Ciccra said, "the reason for the price rise last month is that corn prices have risen significantly after the devaluation of the currency, which makes it difficult for beef cattle raised to meet domestic beef consumption economically It is estimated that there will be a shortage of 200000 beef cattle in July August "The latest data shows that in May, supermarket beef sales fell 25.5% year-on-year, and ciccra hopes that domestic consumption will continue to decline in order to relieve the price pressure in the short term.