Known for its ranches, barbecue grills and huge per capita consumption of steaks, Argentina has seen beef exports drop around a fifth so far this year as the embattled peso has risen, pushing up local costs in dollar terms. - REUTERS
00:00Here in the Ugarte meat plant, workers butcher cuts of Argentine beef that are popular in restaurants around the world.
00:08But the South American country's steak exports are sliding, as costs rise on a stronger local peso.
00:16And exporters are finding it increasingly difficult to place their products on the international market.
00:22In the first quarter of the year, beef exports fell nearly 20 percent year-on-year to around 255,000 tons, according to government agency Senasa.
00:34Shipments to price-sensitive top buyer China plunged to 137,000 tons, from a little over 200,000 tons a year earlier.
00:43Last month, President Javier Malay eased years-long currency controls as part of his effort to stabilize Argentina's economy, a move long sought by investors.
00:55It's impacting exporters as well as sectors like tourism, as the country has become more expensive in dollar terms.
01:02Miguel Jairala, an analyst with the ABC Chamber of Meat Exporters, says that means Argentina's competitiveness on the international stage has become more complicated.
01:15He says Argentina's meat industry currently has higher production costs than Brazil, the world's top beef exporter.
01:23And that's let Brazil consolidate its position as the leading supplier to the Chinese market.
01:28Yajir Awad is a general manager at the Ugarte meat plant.
01:32Many plants have had difficulty, including employees on their permanent payroll.
01:44And this will become increasingly difficult, because we are not competitive compared to various meat processing plants in the region.
01:51Awad says high taxes, including a 6.7 percent tariff when exporting, also contributed to the pain the sector is facing.
01:59Industry groups are lobbying the government to lower taxes.
02:04Argentina's Secretariat of Agriculture did not respond to a request for comment.
