Meat stocks: confusion in China, in European restaurants and a successful brand

CÓRDOBA.- The government’s decision to reduce meat exports for 30 days has generated anger and uncertainty among importers in different parts of the world that they did not expect such a measure. At China -the market reached by 74.4% of local meat shipments- they discovered it by carrying out the “Fucking china», One of the most important international food fairs in the world. For the “Country brand” it is a hard blow.

Sial is a key space for business relations. In fact, the Ministry of Foreign Affairs invited companies to participate. The country has a mounted stand. “They were mobilized by current events and by the lack of detail on how it will be made effective -he says THE NATION– the trader Ornella bonansea, who has worked with China for seven years. There is contracts with cargo for the end of this month and for June and we do not know what will happen“.

Bonansea operates several slaughterhouses in Argentina and ships approximately 1,000 tonnes per month to importers and direct distributors in China. Partner of a Uruguayan who operates with meat from this origin and from Brazil, the executive warns that an interruption such as the one announced “facilitates entry for countries that fulfill contracts, ship on time and have prices up to US $ 100 and US $ 150 less per ton. They are wordy ”.

In Sial – where there are few foreigners due to the pandemic – operations are rare because there is a reluctance to price products in general due to the current context. For Bonansea, the Argentinian decision will have a “very strong” impact and will generate a rise in prices.

Bloom Council prepares an international ranking that analyzes the effectiveness of national branding strategies and its subsequent impact on GDP. The meat is “the” product associated with Argentina in the world. “While this is a resolution that has nothing to do with health or quality control, it encourages any clichés that may exist about Argentina,” It’s fatal, it’s as if Germany suddenly stops supplying Volkswagen», Graphs from Spain, the president of the consulting firm, José Filipe Torres.

After this declaration, he warns: “Germany would hold out longer because the brand is more robust, stronger. In the case of Argentina, this is not the case, especially in the industry beyond this meat is not directly this sector. As he already has a weak mark, it is worse ”.

Filipe Torres insists that a problem in a country like Germany or Japan does not call into question the brand or reputation “for one episode”, but when the brand is already weak – “like Argentina in the sphere of business and governance“- the associated perceptions (they are” clichés and it does not matter if they are real or not “) are triggered and the”the damage is greater“.

Roberto Jellinek to the importer Building Bridges Ltd in the UK. In the case of meat, it is a distributor and barely noticed the closure of exports, bought 4000 kilos from its supplier in the European Union (EU) to face next month which coincides with the high season in the country which, moreover, begins to emerge from the pandemic.

“The interruption is killing us,” he says bluntly. In the case of restaurants (their main customers) this can lead to a change of menu because there are cuts that have no replacement, as that implies. There was already some noise because when China opened its doors, it started to neglect the EU, which was the main customer for years. Uruguay’s biggest presence is already visible“.

Mauricio Tripodi, owner of the importer DAT in Germany which distributes throughout the EU, He confirms that for the programming of operations “it falls like a slap in the face because here the pandemic is only emerging and more work is expected”.

“There is surprise, mistrust. This is a difficult measure to understand because the Hilton quota is 7% or 8% of the average resolution, ”says Tripodi. They force us to look for other options, Argentina will continue to lose market because once you have convinced a buyer, you have to offer them other alternatives that exist, such as Uruguay, Ireland or Paraguay .. The risk is that, if the customer is satisfied, when you want to come back, you have to go through the price ”.

Eduardo Rios Centeno, from the importer Rellman Foods SA which distributes Argentinian meat throughout the EU, confirms that the “credibility” problems that Argentina is already experiencing “are heightened by these decisions” in a market “damaged” by the pandemic.

“Argentinian meat has a good reputation but it’s not new, we’ve been looking for customers for decades,” he adds. We are not the only ones on the market and this measure will benefit Uruguay and Australia. Paraguay is not the same, but it is getting closer. There are clients who do not come back; this theme is not free. Those who have launched out and defend Argentine meat are very reluctant to come back ”.

Ríos Centeno recalls that in 2006 -when Néstor Kirchner ordered the six-month closure of exports- lost a supermarket chain which had as a customer: “He never came back.”

He points out that the other problem for Argentina is that “there is no meat policy; it is very expensive to produce, takes time and funds. The industrial part requires investment and technology and they are told that “the raw material is finished”. Export is a different channel from the Argentinian market; it is easy to say that meat is increasing because it is exported. Huge damage is inflicted for minimal effects“.