Argentina has lifted bans on exporting beef to China.
The government had capped beef exports at half the normal volumes to tamp down fast-rising prices, leading to protests and threats by farmers to halt local trading in cattle and also grains.
Argentina is the world's fifth largest beef exporter and has a national herd of close to 54 million head, more than double the size of Australia's.
Argentina's government announced Tuesday it would allow stockbreeders to resume exporting beef to China, lifting the cap on exports it imposed in May to limit rising prices in the domestic market.
Restrictions will remain in place for seven cuts of beef to ensure domestic supply, the government said.
Under the new guidelines, cows which "no longer have reproductive capacity and that are mostly not consumed in the domestic market" can be sold to China.
The Argentinian export restrictions were seen to be a key influencer of the global beef trade which has seen prices skyrocket around the world and Australia cattle prices breaking records.
Exports will be allowed to resume from Monday.
The biggest factor in world beef markets remains the impact of the African Swine Fever outbreak in China's pig herds which continues to leave an enormous protein shortage in that country.
Argentina first put in place a 30-day complete suspension of beef shipments and then restricted exports to 50 per cent of the average monthly volume exported in the second half of last year.
The move was aimed at raising domestic beef supply, and keeping a lid on inflation but was labelled a political move ahead of elections.
China and Israel are Argentina's biggest customers.
The restrictions were seen as a major contributor to the global beef shortage which is driving up prices.
"It's the redistribution (of beef flows) that will have flow-on affects to Australia," Rabobank's Angus Gidley Baird has said.
"While Argentina has traditionally sent lower value beef to China, not in direct competition to Australia, it is the balancing of the overall trade - the bits around the edges - that creates movements that will affect our exports."
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Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
