Argentinean Beef Supplies Fade
AREGENTINA - Argentinean beef production continued to tighten during April, as finished cattle numbers became increasingly scarce. April production declined 12 per cent on the previous month and was 31 per cent down year-on-year, at 198,000 tonnes cwt - the lowest level since the March 2008's agricultural strike.
11 June 2010
1 minute read
The very tight supply of cattle has been reflected in soaring cattle prices, to the highest level among the South American region, reaching US¢180/kg lwt for light steer categories, reports Meat and Livestock Australia.
The low cattle availability is a result of the severe drought experienced during the 2008-09 season, combined with the industry controls implemented by the local government since 2005. This has resulted in a number of cattle producers liquidating herds and exiting the industry in favour of other more profitable agricultural options.
Argentine beef exports in April slumped 60 per cent when compared to March and 75 per cent year-on-year, to 6,836 tonnes swt. The slump in exports is the result of the limited issuing of export certificates by the government, in order to retain beef stocks in the domestic market, in addition to the closure of a number of plants given the current low capacity utilisation.
However, despite the government's efforts to encourage packers to supply beef to the domestic market through a number of controls and incentives, domestic beef consumption has fallen 20 per cent during the first four months of 2010, to an estimated 56kg/head per annum.when copared to the same period in 2009
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