Experts say there is an end in sight to the foot and mouth problem. Unable to export refrigerated meat, the Argentinean export industry was virtually left without markets and the crisis, which, affected producers from the cattle industry, has extended to grain suppliers and threatens meat packers in Santa Fe.

In a conversation with Mercantil.com, the engineer Alberto de las Carreras, Vice President of the Argentinean Export Committee, stated that: “the week beginning March 12, 2001 will be remembered in the Argentinean meat business as the tragic week.”

Mercantil: How has the crisis affected producers?

De las Carreras: Cattle producers suffered a reduction of 10% in demand and approximately 15% in value due to the higher price of a fraction of exports in relation to consumption.

Mercantil: And the exporters, who now will have to resort to the internal market?

De las Carreras: Export companies will be left with absolutely no market and are looking at a severe loss. Argentina produces 2,600,000 metric tons of beef of which they export 350,000 metric tons. The country will see an export reduction of more than 500 million dollars, approximately 42 million monthly, because the duration of the embargo is unknown. The problem is that there are evasions of sanitary regulations in the supplies for the internal market (the sanitary regulations for export are more stringent) and also tax evasions (value added tax, earnings, social fees). As a result, companies geared toward exports can’t compete in the internal market.

-Could you say that this imbalance is characteristic of Argentina?

Yes, the irregularity of the situation is that Argentina has a double standard (one for internal consumption and the other for exports). If it had one standard, like for example Australia, the problem wouldn’t be so severe because these companies would have a percentage of exports and a much higher percentage of the internal market. Argentina exports 13% of its meat and consumes 87%. There shouldn’t be an economic dilemma that causes problems for businesses and unemployment. But there is this irregularity that has never been resolved for political reasons.

-Are there valid motives for the embargo of the European Union, Chile, Switzerland or other countries that bought meat in times when there was abundant foot and mouth?

Agreements on sanitary conditions with these countries allow the import of Argentinean meat that has been previously boned. So I think that the principal motives for the current situation are due to the enormous pressure in the European Union because of the outbreak of foot and mouth in Great Britain, which hasn’t had the disease since 1967, and the loss of credibility of the Antonio Berongaray, the Secretary of Agriculture, and of SENASA, which caved in dealing with this incomprehensible error.

-Are there shared responsibilities?

The central responsibility is of the current government, which decided to stop vaccinating and didn’t take the appropriate measures at the borders. Also because they knew that they had to announce what was happening but they hid it until it blew up.

-The new comptroller of Hygiene and Quality of Agro-Foodstuffs Service, Hector Salamanco, is trying to turn the situation around...

Yes, but its difficult to restore lost confidence and even more so in an unfavorable context. The evolution of the theme presents a future panorama complicated to define. Brazil, Israel, and Russia haven’t closed their markets but problems are starting to come up in Brazil. As we’ve seen, Argentina can’t be free of foot and mouth without vaccinating and once it’s here it’s hard to get rid of.

SOME NUMBERS

- According to SENASA there are 68 identified cases of foot and mouth in the country. The affected provinces are Buenos Aires, Cordoba, Santa Fe, Chaco, La Pampa, San Luis, Formosa and Salta.

- To date SENASA arranged for the vaccination of 13 million head of cattle.

- The cold storage sector hopes that the European Community restrictions last until April 15, but there has been no announcement on the end of the ban.

- In the province of Santa Fe they have suspended 2800 employees of cold storages, which were 47% of the total of Argentinean exports. These are: Rafaela Foodstuffs, CEPA, Friar, Swift, Quickfood, etc.

- Losses to the cold storage industry have already topped 80 million dollars.

Source: Pulso Comunicaciones, Argentina