Makro planning Argentine exodus?

Makro, a leading wholesale supermarket chain where anyone can shop at more convenient prices, has announced its decision to leave crisis-ridden Argentina after some 30 years in the South American country where sales keep plunging despite President Javier Milei’s administration successful narrative.

According to the consulting firm Scientia, the wholesale sector faced an 18.8% drop in sales in August alone.

The company reportedly put up all its 24 branches in 10 territories for sale. Makro had already reduced its development in other countries in the region such as Brazil, Peru, and Venezuela. Owned by the Dutch group HSV, Makro entrusted Banco Santander with the liquidation procedures, it was also reported.

Although Makro denied the move, negotiations were said to be underway with potential buyers, some of them already involved in the wholesale and supermarket business. Makro’s assets are believed to be worth around US$ 200 million. Makro had landed in Argentina in 1988 through Colombian-born businessman and former Congressman Francisco de Narváez, then owner of the now-defunct Tía chain.

MercoPress

Australian Cattle and Sheep Market Report w/e 16th August 2024

Cattle market

The cattle market was generally positive this week despite a 14¢ decline in heavy steer prices. Yardings eased once again, totalling 48,488 head.

The National Young Cattle Indicator lifted 14¢ to 357¢/kg liveweight (lwt). This is the second-highest price this year, behind the peak in February. A large portion of supply was coming through NSW online sales, which made up 23% of the indicator throughput. NSW online sales took over Roma and Queensland online sales, reflecting a slowdown in Queensland supply (though recent rain across the state lifted restocker enthusiasm).

The Heavy Steer Indicator fell back 14¢ to 345¢/kg lwt, opening the gap between processor-ready steers, trade feeders and restockers. The restocker market was driven by Queensland regarding throughput. Rain across NSW led to stronger restocker steer prices, particularly in Wagga Wagga. The Restocker Steer Indicator lifted 8¢ to 375¢, while the Heifer Indicator was the week’s highest performer, lifting 12¢ to 298¢/kg lwt.

Sheep market

The sheep market was poorer this week, as yardings eased 15% to 246,111 head, with an 11% dip in sheep (78,071) and a 16% dip in lamb yardings (168,040).

The Mutton Indicator eased 11¢ to 362¢/kg carcase weight (cwt), however was the least impacted by the decline in yardings. The declines were largely due to mixed quality of mutton offered to larger buyer markers, especially across NSW, softening $7–$21 in a usually strong Wagga market, and $10–$20 in Bendigo.

The Heavy Lamb Indicator was the best performer – while also being less affected by hits to yardings. The indicator lifted 7¢ to 819¢/kg cwt. Exporters were present across major markets and quality was the driver across NSW – lambs above 30kg drove the excitement, with good lines of grain-assisted stock hitting markets, some tipping $300/head.

Slaughter

Week ending 16 August 2024

Cattle slaughter eased slightly on the previous week, easing by 4,000 head (3%) to 134,023 processed over the week, remaining above the weekly average for 2024.

The most significant change across states was in WA, with slaughter lifting 33% to 3,539 head, their highest since March of this year. Slaughter also lifted 6% in Tasmania to 4,448 and 3% in NSW to 34,993 head. Eases were seen in all other states, starting at Victoria by 1% to 21,959 after the historic highs of previous weeks. SA slaughter dropped by 2% to 3,280, and Queensland (which drove the national dip) falling by 8% to 65,864, their lowest throughput since May.

Lamb slaughter eased 4% to 413,152 processed over the week. Despite lifts in NSW (1% to total 117,392) and Queensland (4% lift totalling 1,477), all other states experienced declines. Sheep slaughter lifted 6% to 154,689 head processed over the week. This was buoyed by a 16% lift in NSW to 63,578. Despite the lift, it is still below the weekly average for 2024.

Combined slaughter remained flat, falling by only 1% to 567,841. Tasmania and SA each fell 10% and 20% respectively to 8,283 and 22,044 mainly due to maintenance closures, while Victoria eased 4% to 269,824. Lifts between 1%–6% were seen across other states; WA (85,228), Queensland (1,492), and NSW (180,970).

MLA

See also:

Australian Red Meat Exports Boom in UK since Free Trade Agreement

Argentina Lowers Beef Export Tax to Boost Foreign Sales

The Argentine government has announced a reduction in the beef export tax by 25%, lowering it from 9% to 6.75%. This move aims to promote sales to foreign markets and improve the income levels of producers and processors, thereby enhancing Argentina’s presence in international markets[1].

This decision by the libertarian President Javier Milei partly fulfills his promise to farmers to reduce and eventually abolish taxes on food commodities, of which Argentina is a significant global exporter. Interestingly, this move also signifies a rapprochement with China, a country Milei had criticized during his electoral campaign and early months in office. China remains Argentina’s main market for meat sales, accounting for 81% of Argentine beef exports[1].

The latest figures from meat exporters show that Israel takes 6% of Argentine beef sales, the United States 5%, Germany 4%, and the Netherlands 3.6%[1]. While the announcement is likely to be welcomed by most cattle breeders and meat processors in Argentina, it has drawn criticism from some quarters.

Paolo Rocca, CEO of Techint, one of Argentina’s largest global corporations, voiced concerns about the impact of China’s purchasing approach on Latin America. Rocca warned about the “primary goods no added value economies trap” that Latin American countries, including Argentina, have fallen into due to Beijing’s centralized and authoritarian policies[1]. He emphasized the need for Argentina to review its long-term strategic policies to avoid becoming overly reliant on exporting primary goods to China[1].

Despite these concerns, the reduction in export tax is expected to provide a significant boost to Argentina’s beef industry, helping it to compete more effectively in the global market.

[1]: An external link was removed to protect your privacy.

References

[1] Argentine government lowers beef export tax to 6.75%

MercoPress

UK approves tariff-free meat imports from Australia and NZ

The UK and EU have ratified a significant change to the Windsor Framework, allowing Northern Ireland (NI) businesses to make greater use of UK trade deals.

This change permits tariff-free imports of certain meat products from Australia and New Zealand, addressing a post-Brexit issue where NI businesses importing higher-tariff meat products could not benefit from the same arrangements as the rest of the UK.

The new arrangement means that over 13,000 tons of lamb, beef, and poultry imports will now be covered by UK tariff rate quotas. Tariffs, which are trade taxes applied to imports of some goods, will not apply to these products within the quota limits. However, imports exceeding these limits will still face tariffs.

Minister of State for Northern Ireland Steve Baker described the arrangement as unique, allowing NI importers to benefit from UK free trade agreements. He emphasized that this move would “further cement Northern Ireland’s place in the UK.” Baker also noted that while he supports free trade, it is essential to ensure that trade deals include provisions to prevent the market from being flooded with cheap produce.

The government has committed to introducing legislation to enact this change, ensuring that NI businesses can take full advantage of the benefits offered by UK trade deals.

John Campbell | BBC News N.I