Argentina-Farmers dispute government figures.

ARGENTINA.

DISSPUTE OVER GOVERNMENT FARM FIGURES.

The four main Argentine farm lobby groups have challenged government claims, that it allowed beef exporters increase exports last year, saying that the statement was at best misleading if not dishonest as beef shipments slumped in 2008.

Exports of beef fell to 397,347 tons, despite the fact that there was government approval to export 540,000 tons. The farm leaders have accused the government agricultural section at ONCCA, of delaying documentation and export permits in order to keep beef home for the domestic market. They claim also that even the lucrative Hilton quota to the European Union, was not filled by 30 June, costing the beef industry millions of dollars.

There was indeed an increase in the export of beef trimmings and manufacturing cow beef to Russia, however a massive drop in the exports of prime beef to the rest of the world.

The Argentine Rural Federation, one of the main farm groups emailed a press statement on Friday, voicing its complaints saying, "This new manipulation of data has the clear intention of wanting to confuse the public".

While the exports in theory were allowed at 540,000 tons, in reality only 390,000 tons were approved for export by the government, resulting in a drop of 30% in the price of beef between August and December 2008.

The major beef exporting plants, that traditionally vote with the government on most issues are standing behind the farmers on these allegations.

Beef plants have to sell 80% of production on the home market, which is fine for plants slaughtering prime cattle.

Companies like Argentine Beef Packers or Molinos, who only slaughter manufacturing cows, cannot meet these conditions unless they re structure their whole production and marketing.