The government extends meat export to guard the trade balance

 

January 7, 2012

 

Interior Commerce Secretary Guillermo Moreno, met with entrepreneurs of the meat, supermarkets, refrigerators and other retailers to announce a relaxation of the sales relationship between internal and external market.

From now on, as could know M24Digital, for every ton of meat for trade in Argentina, 3.5 to be sold abroad, when he was only allowed to export 2.5.

The increase has two clear objectives. The first is to avoid oversupply in Argentina, to avoid any change in the relative values ​​of chicken and pork (which make up today, in terms of weight, 40% of the Argentine table).

The second is to look after the trade balance in 2012. The government seeks a favorable balance of between 10 000 and 12 billion dollars that are essential to maintaining a stable balance in the local economy.

This goal is hampered by poor international forecasts, yielding a deepening crisis in Europe by the second quarter. This would result in excess stock to be redirected to markets such as Latin America, reducing the trade balance.

To do this, the government must first make and encourage investment to ensure import substitution. Second, should take advantage of foreign exchange markets such as agriculture (which show a significant surplus in terms of products for domestic consumption, ie, that are little saturated).