FAS Expects Reduced Beef Exports from Argentina, Uruguay

June 14, 2001

Recent outbreaks of foot-and-mouth disease in Argentina and Uruguay will sharply curtail beef exports from those nations, according to projections in a special report issued by USDA's Foreign Agricultural Service (FAS). FAS expects Argentina's beef exports this year may drop 29% and Uruguay's beef exports may be off nearly one-third, compared with forecasts made in March 2001.

FAS analysts noted the FMD outbreaks have shattered both countries' hopes of significantly expanding their shares of the world market for high-valued fresh and frozen beef, a prospect that seemed highly likely just a few months ago. The United States and other major importing countries now have imposed strict controls on Argentinean and Uruguayan beef.

The United States will allow entry of only beef from FMD countries that has been thermo-processed. Fresh and frozen beef is now banned. Both countries have elected to combat FMD through massive vaccination programs, not with large-scale slaughter. The European Union and other markets may reopen once Argentina and Uruguay make progress in controlling the disease.

However, exports to the United States and Canada -- the fastest growing market for both countries over the past two years -- will remain closed for fresh and frozen beef until each country regains its FMD-free staus.

The full FAS report is available on the Internet at: http://www.fas.usda.gov/dlp/highlights/2001/wmr_arur.pdf.