Argentine President Javier Milei has lifted a 52-year ban on exporting live cattle for slaughter, which follows a surge in the South American nation’s beef exports.
Argentine beef exports in 2025 are forecast to reach at 860,000 tonnes carcase weight equivalent (cwe), according to the USDA, five percent higher than in 2024, the highest on record.
Beef exports are being driven by greater projected beef output and firm foreign demand. Local exporters believe exports could be close to the 1 million tonne mark over the next few years, the USDA said in its most recent analysis of the country’s beef sector.
A new government took office in early December 2023 and has pressed forward with several changes designed to free up the economy of many protectionist barriers and limitations.
Earlier this month, the Milei government introduced a five-month tax cut on grain and grain-derived exports to try to boost overseas sales.
Late last year, President Milei cut ilocal duties levied on beef exports to 6.75 percent from the previous rate of 9 percent.
In a new decree announced on Tuesday, President Milei has continued his deregulation agenda by repealing a 1973 ban on the export of cattle from Argentina for slaughter.
Argentina’s agricultural secretariat said in a statement this week reported by Reuters that the policy reversal on cattle exports was a move towards “greater competition within the meat and livestock chain,” in line with libertarian President Javier Milei’s push to deregulate South America’s second-biggest economy and boost growth.
While Argentina has one of the world’s highest per capita consumption rates, beef consumption is declining, according to the USDA, mainly due to an increase in demand of less expensive alternatives such as poultry and pork, which combined total more than the volume of beef, once the preferred meat by far.
With growing beef production and domestic consumption habits changing, Argentina sees a need in future to focus more in growing exports by opening new markets and expanding those which are already open, the USDA said.
Exports in Argentina have historically accounted for 15-25 percent of total beef production depending on market conditions and domestic policies. In recent years, with domestic consumption declining, exports are fluctuating more in the range of 25-28 percent. Many analysts believe this trend will continue and exports will account for a growing share of beef production in years to come.
Argentina’s herd comprises a majority of British breeds in the temperate central area and their crosses with Brahman in the northern, harsher areas.
China has been the largest export market for Argentina’s beef in the past decade, followed by sales to the European Union and Israel.
However, low prices in China are forcing exporters to look for alternative and more lucrative destinations.
The main products imported from Argentina are frozen forequarter beef blocks, 85-95 percent chemical lean (CL). Other typical cuts China imports are shin shank, round cuts and bone in flank. Roughly 70-80 percent of beef exports to China come from cows.
Almost all beef is exported frozen, although lately some meat packers are testing exports of chilled cuts.
Livestock export industry sources have told Beef Central they expect that Turkey to be a primary destination for Argentinean export cattle, but also note there is huge demand from the Middle East/West Asian region including from Iran, Iraq and other markets like Saudi Arabia.
There are also very large numbers of cattle now being exported from South American, with Merco Press reporting that Uruguay now exports some 250,000 cattle per year and Brazil 750,000 per year.
With those figures Brazil is on track to potentially exceed Australia which exported 765,000 cattle in total last year.
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