Sunday, May 14, 2017

Agricultural Science: Argentinian Meat Industry

Argentina. The country conjures images of rancheros on horseback herding cattle across sweeping grasslands, but Argentina means something quite different to the American Pork Industry. For the last few years’ excessive tariffs (15%) on local beef production dropped Argentina from the third largest beef producer, to the tenth (Schuele, 2016). This change meant that the local population was eating more beef and minimal imported meat products such as chicken and pork.


Today, Argentina is looking towards new regulatory practices under the leadership of President Mauricio Macri. President Macri is pro-trade, with an interest in promoting exportation of agricultural products like beef, and importing alternative meat sources such as pork. Hoping to “rebuild cattle supplies and beef production, Macri axed the export tax and allowed the peso to depreciate by more than 40%” making it more profitable for the cattle industry to sell abroad and domestically. This caused a recessive economy because prices for beef jumped up 50% in the space of four months (Newbery, 2016) and led to a demand for cheaper meats, predominantly chicken and pork, consumption of which increased from 20kg to 47kg for chicken and from 6kg to 15kg for pork [per person] since 2002 (Newbery, 2016).

“’I’ve gone from not even stocking pork ribs to selling 100kg per week,” Méndez says (Newbery, 2016).

Traditionally a beef eating nation, Argentineans have started looking at new foods, buying cheaper cuts, and experimenting with recipes from abroad. One would think that this would open up doors to foreign suppliers, but importation policies are hampering the transition. “Currently, fresh, frozen and processed U.S. pork are ineligible to be shipped to Argentina because of unscientific mitigation requirements and other sanitary issues that are not based on science” (National Pork Producers Council, n.d.).

These ‘unscientific’ regulations include “an audit of U.S. plants … by the Argentine sanitary authorities to evaluate the U.S. sanitary status and manufacturing controls of pork meat and meat processing” (Balbi, 2016). One would think that checking the quality control of meat coming in and out of a country would be considered a good thing, but the regulation is a political and logistical nightmare. Basically, the Argentinian government wanted access to every pork production house in the U.S. to inspect them, which is non-feasible as “[a]ccording to NASS [USDA’s National Agricultural Statistics Service], as of January 1, 2015, there are…2,770 slaughterhouses in existence around the country” (Kennedy Esq., 2016).

A counter-offer has been proposed by the U.S. which would include Argentina under the U.S.’s Generalized Systems of Preferences (GSP), which is “designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories” (Generalized System of Preferences (GSP), n.d.), and utilize a special export certificate in order to export pork which, for the last 10 years, the U.S. has been the number one exporter of. Being able to increase pork production to Argentina would open a new market for our producers to South America’s third largest economy.

Critics of the U.S. food industry may well be on board with Argentina’s wanting to look things over themselves, however. In 2015, the Government Accountability Project (a ‘whistleblower protection organization’) stated that several USDA inspectors following up on a pilot program in five major hog slaughterhouses believe we are “moving too fast…to adequately address contamination and food safety concerns” (Gillam, 2015). The pilot program is “engineered…to speed up lines while improving food safety and trim inspection costs” (Gillam, 2015). They allege that the program, which allows the producers to do more of the inspection oversight of the pre-and post-slaughter inspections, also allows for an increase in salmonella, cystic kidney, and bladder stem contamination (Gillam, 2015).

Even if the pilot program falls to the wayside there are other concerns. That same year China declared U.S. pork unfit to eat. A drug approved by the FDA named Ractopamine is on a banned list in more than 200 countries, including China, which is the world’s number one importer of pork. The drug changes how much feed is required for a pig to produce muscle, which creates a lean meat on heavier carcasses. The problem is that a large number of pigs die or have adverse effects like seizures and hoof disorders when fed the drug orally according to a FDA report (Jitchotvisut, 2015).

With these as issues, it’s no wonder that Argentina balks at our pork. An open market is a great idea, it allows food to pass from one country to another without financially destroying either agency, but one must ask oneself, is money really worth our health or the health of the world?

References

Balbi, M. J. (2016). Argentina Food and Agricultural Import Regulations and Standards - FAIRS Country Report. USDA, Foreign Agricultural Service. Retrieved March 22, 2017, from http://agriexchange.apeda.gov.in/IR_Standards/Import_Regulation/Food%20and%20Agricultural%20Import%20Regulations%20and%20Standards%20%20NarrativeBuenos%20AiresArgentina2102016.pdf
Generalized System of Preferences (GSP). (n.d.). Retrieved March 23, 2017, from U.S. Customs and Border Protection: https://help.cbp.gov/app/answers/detail/a_id/266/~/generalized-system-of-preferences-(gsp)
Gillam, C. (2015, January 30). U.S. pork plant program draws criticism, Hormel petition. Retrieved from Reuters: http://www.reuters.com/article/usa-pork-foodsafety-idUSL1N0V91JR20150130
Jitchotvisut, J. (2015, August 12). China Doesn't Want America's Pork Because U.S. Pigs Are Being Pumped With Ractopamine. Retrieved from http://firstwefeast.com/eat/2015/08/chinas-doesnt-want-americas-pork-because-u-s-pigs-are-being-pumped-with-ractopamine
Kennedy Esq., P. (2016, February 26). Slaughterhouse Shortage in the U.S. Retrieved from Farm-To-Consumer Legal Defense Fund: https://www.farmtoconsumer.org/blog/2016/02/26/slaughterhouse-shortage-in-the-u-s/
National Pork Producers Council. (n.d.). Pork Issues: International: Argentina. Retrieved March 22, 2017, from National Pork Producers Council: http://nppc.org/issues/issue/argentina/
Newbery, C. (2016, April 28). Argentines turn to chicken and pork as beef prices soar. Retrieved from Global Meat News: http://www.globalmeatnews.com/Industry-Markets/Argentines-turn-to-chicken-and-pork-as-beef-prices-soar

Schuele, J. (2016, January 4). Argentina to revive beef exports, bolster producer profitability. Retrieved from Beef Magazine: http://www.beefmagazine.com/beef-exports/argentina-revive-beef-exports-bolster-producer-profitability

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