Argentina restricts beef exports through October, seeking to halt inflation

BUENOS AIRES — Argentina extended beef export restrictions until the end of October, stoking tensions with the powerful farm sector as the government seeks to bolster domestic meat supply to help contain rising food prices.

The move comes months before key midterm elections, with center-left President Alberto Fernandez keen to avoid a sharp rise in the cost of beef in a country where families regularly gather to cook meat around the "asado" grill.

Spiraling consumer prices could hurt his party's chances with voters in the South American country already feeling the impact of the coronavirus pandemic.

The government had in June limited exports of some beef cuts until the end of the year, sparking tensions with farmers. A cap until the end of August on beef shipments at 50% of the previous year's level has now been extended by two months.

"In the short term, the tool of limiting sales abroad is essential to guarantee Argentine access to beef in the face of the sharp increase in prices for consumers," it said in a decree in the official gazette.

Argentina is the world's fifth-largest beef exporter and a key supplier to China. It is the top global exporter of processed soy and a major wheat and corn producer.

Jorge Chemes, president of the Argentine Rural Confederations, said farm bodies would meet before deciding what action to take. He threatened rallies and trade halts.

"I'm certain we will have something along the lines of a trading halt," he told a press briefing.

The president of Sociedad Rural Argentina, Nicolás Pino, said members would consider a commercial strike.

Earlier this year, protests by farmers led to the national livestock markets closing.

Argentina has suffered from high inflation for years, with the annual rate running above 50%, and has started to emerge this year from a recession since 2018.

Miguel Schiariti, head of Argentina's CICCRA meat industry chamber, told Reuters the sector had lost around $100 million in exports last month due to the caps, which could push up prices.