Government's restriction on cattle exports will not reduce inflation or alleviate food prices
Restrictions decreed on external cattle sales will not achieve the objective. Photo: iStock
TL;DR
- The Ministry of Agriculture is restricting exports of cattle under two years old and the sale of female cattle to lower domestic beef prices.
- The livestock sector believes these measures will not reduce meat prices, as exports are already declining and domestic consumption is increasing.
- Restricting exports of young cattle could disrupt trade with the Middle East, a key market that prefers younger animals for cultural reasons.
- The sector warns that these restrictions could lead to a loss of foreign exchange and push markets towards competitors like Brazil and Uruguay.
- There are concerns that the measures might encourage illegal trade, particularly with Venezuela.
- The government has not yet met with cattle ranchers to discuss the new regulations.