Release the Cows C!

Release the Cows C!

The government has restricted the export category, which makes a small contribution to domestic consumption but is key to income for producers.

Minister Julian Dominguez set up an observatory for beef that was not invited
Minister Julian Dominguez set up an observatory for beef that was not invited

The title of this post attempts to emulate the claim of Orca Will’s release in a well-remembered 1990s film claiming that the government would release a ban on the export of seven pieces that are banned in Type C cows. These cows, with low demand and prices in the domestic market, have the opportunity to increase their contribution to the cattle and meat chain, in the broadest sense of the word, by exporting to China without restriction.

For those who have not followed the beef export process, I will try to summarize in a few words what happened more than a year ago when the government initially decided to suspend beef exports for 30 days. Since that moment and as a result of numerous modifications, exports have fallen by 18.5% compared to the previous year. It should be clarified that this calculation does not include bone removal and this decrease was observed only in seven months, since in the first 5 months, without restrictions, the accumulated volume exceeded by 13% the volume exported in the same period last year. This latest information exacerbates the losses caused by what was known as exporting stocks.

By the beginning of 2022, the government will simultaneously decide to ban the export of 7 cuttings so that they are intended for domestic consumption, in all categories except cows and bulls of type D and E, partially recognizing the claim. Exemption of restrictions, which included Type C cows and whose commercial purpose was mentioned at the beginning of the note.

This year, Agriculture Minister Julian Dominguez assured that the possibility of exempting C beef from restrictions is being considered as a result of a joint analysis with the Beef Production Observatory in April last year, which is to work with representatives of the production entities. , Industry, provinces and government agencies that It was not created despite the resolution and that is considered the evolution of meat stock, production and supply.

Analyzing this year’s figures, up to May and official data, beef stocks increased by 3.1%. Preliminary data from the first vaccination campaign against foot-and-mouth disease in 2022 indicate an increase in the number of calves (future delivery) by more than 2% and confirm the increase in average slaughter weight. All the indicators that show that the productivity and efficiency of the beef and beef chain are perfectly developed, despite the strong stimulus generated by the closure of exports.

Influence

Going back to the cows, the figures accumulated for the first five months of the year indicate that they represent 4.6% of the total slaughter and that 7 slaughter bans represent out of the total available for the domestic market, approx. 1%, a rate that clearly has no impact and does not justify the restriction it needs.

Conversely, when it is analyzed in terms of the stimuli it can generate in livestock, suffice it to say that The sale of unproductive cows represents between 32 and 40% of their net income, according to a recent publication of the Ministry of Agriculture ‘s Livestock Economic Outcome Report, and that the slaughter of C cows accounted for 32% of the volume slaughtered as of May. By the same organism.

Improving the value obtained by the breeder for the very representative volume of their income, compared to the meager contribution of the limited kilograms in the domestic market, in no way justifies the delay in the decision to be taken as soon as possible.

In short, a significant incentive for a breeder, an overlooked contribution to the domestic market, an improvement in value added with all its connotations, and a higher foreign exchange earnings must be more than convincing assumptions in order for them to respond to legitimate and expected demand. For the release of the cow c.

The author is a livestock consultant

Source: La Nacion

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