MEAT TRADE OF ARGENTINE

Waipa Post, Volume XXIV, Issue 1680, 29 October 1925, Page 6

MEAT TRADE OF ARGENTINE

EXPORTABLE SURPLUS REDUCED.

Although during, the first five months of the year (according to advices just to hand from ißuenos Aires) meat shipments from Argentina not only kept up to the standard set in the corresponding mohths of 1924, but actually surpassed those —up to then — record figures, in the past several weeks, the statistical table referring to beef exports has undergone a certain transformation. The beef exports ■for the period January to July in this and last year were as follow: January-July, 1924, 2,899,105 frozen quarters; 2,889,085 chilled quarters; January-July, 2,560,572 frozen quarters; 2,641,620 chilled quarters. Difference. 338,533 frozen quarters; 247,465 chilled carcases.

These differences are not really great, and, compared with the average for the same period in other years, the beef shipments thus far in 1925 have been 'highly satisfactory. Furthermore, the average prices for the period have ■been good, owing to the strenuous competition carried on for a period between the different exporting firms competing for a “ ground floor ” footing to the Continental markets. It is certain, however, that the fact must •be brought home sooner or later to the Argentine cattle raising interests that instead of considering the advance in prices which has taken place since last year as something heralding even more and better things to come, it would be better to cultivate a frame of mind inspiring tbe utmost efforts on their part to adjust the cost of production to a basis of parity with a safe average of the prices which have been paid in the past twelve months. Itmust be remembered that authoritative opinions given out at the beginning of the year and founded on full knowledge of grazing and other conditions basically related to production implied the full expectation that the beef shipments in the first half of this year would be decidedly on the low side compared with those of the same time of 1924. The fact that the same rate of shipments was nearly maintained has been attributed, as stated above, to unusually keen competition among exporters. As a result of this condition meat has admittedly been sold in the importing countries at prices below parity with those paid the Argentine producers for their cattle. There has, in other words, been something artificial in the cattle price situation, and as no artificial situation can last for ever in a trade which, in the long run, must, as do all others, be governed by the law of supply and demand, there seems to be something rather futile in the continued argumentative insistence of cattle-raisers that prices must go higher still.