The ABC Consortium is optimistic about an additional quota in the United States that would help reduce the sector’s dependence on China. Argentina’s beef exports started the year off on the wrong foot. In January, year-over-year exports dropped by 20%, mainly due to three key factors: lower cattle supply and a combination of low international prices and the sector’s current competitiveness conditions. Despite these challenges, the ABC Export Consortium remains hopeful for positive news this year.
Mario Ravettino, head of the organization, told Bichos de Campo that progress could be made in defining a new tariff quota for exporting beef to the US.
Argentina already has a 20,000-ton quota with preferential tariffs, but expanding it is complicated. For this reason, the focus is on designing a separate quota that would allow better use of the opportunities in a growing import market, ultimately reducing dependence on China.
"Alternatives are being discussed. Right now, trade relations with the US are more than optimal. There is political reciprocity to facilitate progress. We have received information from the government that there will be developments in the trade relationship. We still don’t know the details of how this will materialize or what the characteristics would be, in our case, for a higher volume of beef exports. But the outlook for that market is positive," said Ravettino.
The head of the ABC Consortium—which represents 25 meat processing plants responsible for 80% of Argentina’s beef exports—pointed out that "it will not be viable to increase the existing quota due to opposition from American farmers." Instead, he argued that "the most convenient solution would be to create a religious quota for kosher and halal beef for this market, with competitive prices."
There are concerns that improved relations with the US could impact Argentina’s beef exports to China. "We continue to work hard on our market access agenda with China, specifically on the bovine offal protocol. In this regard, the visit of China’s Deputy Customs Minister is confirmed for the second half of March. We are preparing a full agenda, organizing a series of meetings, and of course, the offal protocol will be a key topic. So, we are moving forward. We have an excellent relationship with China and its companies, despite the economic disputes between these two global leaders," Ravettino assured.
