US expands quota for Argentine beef to 80,000 tons per year

Under a new bilateral agreement with the United States, Argentina will be allowed to export up to 80,000 tons of beef per year, up 60,000 tons from the previous quota. Experts say the decision is a recognition of the high quality of Argentine meat and opens up new commercial opportunities in the premium North American market, although the country will have to increase its livestock and increase productivity per cow to ensure stable supplies and maintain domestic prices.

The expansion of the quota comes against the backdrop of a crisis in the United States, where the cattle population is at its lowest in 75 years. Despite this, demand for beef has grown by 9% over the past decade, forcing the US administration to increase imports to stabilize the market and contain price increases. For Argentina, the agreement is a sign of international confidence and an incentive to promote local meat on the global market.

Analysts explain that the economic benefit for Argentine exporters lies in the difference in tariffs: sales within the quota are taxed at 10%, while outside it – at 36.4%, which provides additional income of about $ 300 million. At the same time, experts emphasize that the impact on domestic consumption and production volumes will be minimal, since the additional tons sent to the United States will reorient existing export flows.

However, the main problem for the full use of the new quota is the shortage of cattle. Experts note that in order to increase production, it is necessary not only to expand the herd, but also to increase productivity per cow – in the world, countries with similar livestock produce 600 kg of beef from one animal, while in Argentina this figure is currently about 400 kg.

Experts emphasize that the success of exports will depend on coordinated actions by producers, meat processing plants, and certification bodies to maintain high quality standards. Only a combination of increasing livestock and increasing productivity will allow Argentina to remain competitive in foreign markets, ensure stable prices in the domestic market, and consolidate its status as a reliable supplier of foreign exchange earnings.

Tags: Beef cattle, USA, Argentina