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Argentina’s ‘Hilton’ Quota Performance at Stake

06 May 2011
Meat & Livestock Australia

ARGENTINA - Argentinean 'Hilton' High Quality Beef exports to the EU totalled 19,290 tonnes swt during the first nine months of 2010-11.

According to analysts at Meat and Livestock Australia, the Argentinean industry remains concerned about the possibility of not filling its 28,000 tonne quota allocation for the second fiscal year in a row.

Despite shipments increasing 118% year-on-year (due to a delay in the quota distribution for the 2009-10 period), volumes remain lower than in 2005-06 and 2007-08, with difficulties in sourcing eligible cattle and heavy cattle prices remaining high.

Argentinean packers have struggled during the current year. Although the local government's intervention in the currency market has influenced a slight appreciation of the US$ since 2009, average heavy steer prices have soared around 85 per cent (in US$ terms) year-on-year as supplies remain scarce.

In contrast, average 'Hilton' beef export prices have increased 22 per cent to US$13,760/tonnes, with the European market remaining subdued due to the poor economic situation and end users trading down in quaility, MLA says.

The Argentinean industry has little more than two months to ship the remaining 8,700 tonnes swt.

Meanwhile, total Argentinean beef exports during the first three quarters of 2010-11 were down 65% year-on-year to 95,259 tonnes swt, as exporters focus on the more profitable domestic market.

TheCattleSite News Desk


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