Argentina appears on track towards reaching an agreement to reopen beef exports. The potential deal comes days ahead of the expiration date on the government's month-long suspension, according to Reuters. Argentina paused beef exports to combat domestic inflation, which is estimated overall at about 50 percent this year.
Since enacting the export ban, Argentine beef packers began negotiating with the government to lift the restrictions, fearing they could be extended. An Argentine government official tells Reuters, “We are seeking an agreement that would allow the meat export market to reopen while expanding production enough to guarantee domestic supplies as well.”
Argentina exported roughly 28 percent of the 956,000 metric tons of beef produced in the first four months of 2021. Argentina is the second-largest supplier of beef to China, behind Brazil. Beef prices are surging around the world as China is importing more beef, and higher grain prices are pushing feed costs higher.