Cover Page | Contents | Subscribe | Back Issues   



ARGENTINA
Beef exports are back



People are always cheered by news of sickness in retreat, but Argentina's recently recognized victory over hoof-and-mouth disease, a highly contagious ailment that can kill cattle, was celebrated with particular fervor.

Argentines are justifiably proud of the lean, tender meat produced by cattle fed on the Pampa's lush grasslands. But while the meat's quality is recognized abroad, and Argentina was once among the world's premier meat exporters, the country's beef industry has been severely affected over the last 60 years because of the stubborn presence of hoof-and-mouth disease.

Locked out of the world's principal markets by sanitation laws that prohibit fresh beef imports from countries where the disease persists, Argentine producers have been limited to selling cooked and processed meat products. Lost sales related to the disease were estimated at $1 billion per year.

"The eradication of hoof-and-mouth is proof of our collective capacity to overcome adversity," Felipe Solá, Argentina's agriculture secretary, said recently. "This accomplishment, which for so long was considered unattainable, was made possible by the hard work of Argentine beef producers, the technical support of the scientific community and the existence of an effective vaccine."

The 146 member countries of the International Epizootic Organization, which monitors animal epidemics under the World Trade Organization, gave Argentine fresh beef a sanitary seal of approval in May. In June the U.S. Department of Agriculture, widely regarded as a pace-setter on such issues, lifted a ban on fresh beef from Argentina that had been in effect since 1930. Effective August 25, the U.S. allowed imports of up to 20,000 tons of fresh Argentine beef per year.

The campaign to stamp out hoof-and-mouth was a massive undertaking, costing around $150 million annually in public and private funding. The effort was supported by a $107 million agricultural and livestock sector modernization program funded by the IDB and the World Bank in 1991.

"One of the program's goals was to vaccinate 100 percent of Argentina's cattle in five years and eliminate any remaining foci of the disease," said César Williams, an IDB sector specialist in Argentina. "The vaccination rate did in fact rise from 60 per cent to 100 percent during that period," he said. "Producers also began using a more effective and less expensive vaccine, while implementing sanitary measures such as an epidemiological early warning system for detecting other diseases."

The IDB-funded program has also introduced quality control and export and trade promotion measures that should help reestablish Argentina's position as a leader in fresh beef exports, according to Williams.

The struggle with hoof-and-mouth is not entirely over, however. Argentina is currently controlling the disease by vaccinating virtually every head of cattle on its soil. But the countries with the most demanding sanitary standards, such as Korea and Japan, require evidence that the disease will not return even after the vaccine program is discontinued. Experts estimate that Argentina could pass that final milestone within three years.

Argentina hopes new markets will help its beef exports to increase by 70 percent by the year 2000, to 800,000 tons. More than 90 percent of Argentine beef is still consumed domestically.

--Christina MacCulloch




HOME
ABOUT THE IDB | BUSINESS OPPORTUNITIES | DEPARTMENTS | POLICIES |  PRESS & PUBLICATIONS | PRIVATE SECTOR | PROJECTS | RESEARCH & STATISTICS