Argentina, one of the world’s biggest beef exporters, suspended exports for two weeks as the country reels from a currency devaluation after outsider presidential candidate Javier Milei won a primary election on Aug. 13.
(Bloomberg) — Argentina, one of the world’s biggest beef exporters, suspended exports for two weeks as the country reels from a currency devaluation after outsider presidential candidate Javier Milei won a primary election on Aug. 13.
Shipments of all beef have been suspended while meatpackers and the government agree on new levels for prices, according to a spokesperson for Argentina’s customs office. “Until there’s an agreement, there’ll be no export permits granted,” the statement said.
Read More: Argentina Beef Prices to Pour More Fuel on 116% Inflation
Argentina is bracing for rampant inflation to accelerate even further after the cash-starved government ran out of dollars to defend the peso and let it plunge 18% overnight, as Milei sprang a surprise in a key primary vote. The government is now scrambling to stop the devaluation from rapidly and fully passing through to local food and fuel prices.
Argentines vie with their neighbors in Uruguay as the world’s biggest consumers of red meat, so politicians closely watch prices. The government already has a longtime ban on exports of seven beef cuts most popular with locals.
Read More: Argentina Refiners Seek Immediate 15% Fuel Hike: EconoJournal
Even before the devaluation, increases to domestic beef prices were expected over the next few months.
Most of Argentina’s beef exports go to China.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.