Argentina Tuesday extended beef export restrictions through the end of October. Reuters reports the Argentine government seeks to bolster domestic supply to help contain rising local food prices. Restricting exports by the Argentine government is often politically fueled, and this time comes a few months ahead of mid-term elections.
A similar move occurred in June when the government limited exports on specific beef cuts and capped beef shipments by half of last year’s level through August. The government says the restriction “is essential to guarantee Argentine access to beef in the face of the sharp increase in prices for consumers,” A meat industry representative in Argentina told Reuters the sector had lost around $100 million in exports last month alone due to the restrictions. Argentina is one of the world’s largest beef exporters and a key supplier to China. Global beef prices are surging as China imports more beef, and higher grain prices push feed costs higher.