Exporters ask the government to scrap export taxes and are hopeful for a positive resolution

As WBR reported in its previous edition, exporting slaughterhouses have asked the government to suspend beef export duties, at least temporarily, the ABC chamber confirmed to La Nación. They also requested, among other measures, payment of the export rebates—1.25 % for frozen beef and 1.50 % for chilled beef—overdue for nine months. “Officials showed a willingness to listen. We laid out the situation and they said they are analyzing it. We hope for a positive response,” they said.

The shortage of cattle and its high dollar price, rising labor and input costs, the 6.75% export tax on steers and other distortionary levies have eroded the competitiveness of Argentine exporters, leading for months to shorter shifts, fewer slaughter days, suspensions and lay-offs.

This week Devesa, better known as Azul Natural Beef, cut about 100 jobs—around 10% of its staff—press reports said, and industry sources insist the case is far from unique.