Argentine beef exports are once again gaining momentum on the international stage. The meat processing sector faces new challenges: high market demands for stable prices and the simultaneous pursuit of new trade opportunities require strategic planning, ProAgro Group reports.

The industry is undergoing a period of structural development. Whereas sales were the main challenge in the past, the current issue is producing enough product to supply multiple markets simultaneously. “Our problem is a shortage of local raw material, and I don’t see any near-term prospects for recovery,” said Mario Ravettino, president of the ABC consortium.

In the short term, export growth will come not from increasing herd sizes, but from improving efficiency and productivity. “The most important thing is to increase the weight of the animals before expanding herd size,” explained Ravettino, emphasizing the need to optimize the weight of each animal. The current economic context allows producers to achieve profitability and creates opportunities for investment.

Key Export Markets

• China remains the main importer of Argentine beef, setting the rules and determining prices. The structural asymmetry in negotiations requires producers to adapt their strategies to market demands. At the same time, finalizing the protocol on by-products with Chinese Customs (GAC) could significantly boost profitability by reducing losses from informal supply channels.
• United States strengthens its role as a strategic market. A new agreement allows the export of 100,000 tons, of which 80,000 tons will be duty-free, and 20,000 tons will be taxed at 10%. The quota covers a wide range of products, from premium cuts to industrial meat products. However, preferential access requires partial redistribution of volumes from other markets, including China, due to production constraints.
• Chinese protective measures: China’s ongoing investigation into trade barriers may lead to a quota system, with tariffs outside the quota rising to 20–25%. The key challenge for exporters is to maintain competitiveness within the allocated quota.

Domestic Factors

Domestic export taxes remain a key constraint on competitiveness. Ravettino insists on their removal, as they hinder investment and production.

Diversification and segmented demand

International demand is becoming increasingly segmented. The halal market is expanding opportunities beyond Arab countries to Europe and the U.S. Exporters must focus on the end consumer rather than the destination country. However, structural constraints due to raw material shortages remain a key factor.

European standards and the Visec Carnes system

The Visec Carnes system ensures compliance with European environmental and traceability standards without additional costs for producers. “The EU does not require certification; it requires documentation,” Ravettino emphasized, highlighting the advantages of the system over private certification schemes.

Source: Meatinfo