Argentina-Soy at record levels.

ARGENTINA.

SOY EXPORTS AT RECORD LEVELS, BEEF EXPORTS IN TROUBLE.

The government of Argentina has changed the rules again, regarding beef exports.

Since the initial government beef export ban in March 2006, the rules have changed over a dozen times in regard to who can export what beef.

The initial rules were in 2006, that plants could export 50pc of previous years production.

The rules then changed to 30pc of previous years production. This was difficult but workable, having said this, 80 pc of the export beef plants chose to sell out their premises to foreign buyers.

The latest regulations introduced since the farmers dispute, are that you can export 20pc of total production, as long as you sell 80pc on the domestic market. This looks good on paper, however the domestic market is run by hundreds of large small and medium sized wholesalers, who do not export.

The export trade is controlled by companies with no involvement in the domestic market.

The net result of all this new confusion, are many government delays in issuing export permits.

The beef exports for 2008 were 390,000 tons, which if far less than quota of 550,000 allocated to Argentine exporters..