Argentina's tanners' associations have signed an agreement with the Ministry of Economy whereby they have agreed to pay 5% on top of the raw hide prices asked by slaughterhouses when negotiating bovine raw or wet-salted pelts as of June 8, 2005.

The 5% increase will be added to the agreed price and must be described in the invoice as "Temporary Solidarity Contribution". The agreement will be in force for 150 days expiring on November 8. The main purpose of the agreement is to help to  reduce beef prices.

It remains to be seen whether beef prices will in fact fall in Argentina at a moment when international beef prices have risen as a result of the confirmation of the first US case of BSE.

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