Argentine beef policy has backfired, USMEF says
28/09/2010
Reporting from the event, the US Meat Export Federation (USMEF) said shortages in the country with the highest per capita beef consumption in the world were the result of severe drought and “interventionist government policies” that have hampered the industry’s ability to export.
Erin Daley, an economist working with USMEF, said these circumstances are making grain farming much more attractive than ranching, contributing to a shift in this region’s land use. She added that while it was the Argentine government’s intent to limit exports in an effort to keep domestic beef supplies plentiful and prices low, the policy has clearly backfired as resources have shifted, beef supplies have tightened and domestic beef consumption has declined sharply.
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