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Argentinean Beef Consumption To Drop

18 February 2010
Meat & Livestock Australia

ARGENTINA - Argentinean beef consumption is estimated to drop to 50kg cwt per capita (from 70kg cwt in 2009) as a result of the estimated drop in beef production in 2010. Due to tightening supply, local beef prices increased 40 per cent between 13 January to 13 February 2010.

According to Meat and Livestock Australia, local analysts have predicted that total beef production will fall by around 1 million tonnes cwt this year, as producers rebuild the herd and slaughter levels decline 30 per cent to 11.5 million head compared with 2009’s record slaughter of 16.3 million head.

Last year’s high slaughter figures were the result of the liquidation process, that resulted from restrictive government policies to control beef price rises in the domestic market, and the severe drought conditions experienced since mid 2008, reducing the breeding herd (CICCRA). Lighter average slaughter weights also resulted from the subsidies focused on light steer production for the domestic market.

According to industry sources, the government, through its Secretary of Internal Trade, will continue to subsidise feedlot production and cap prices at the saleyards and at wholesale.

In addition, the government has already announced that the issuing of export certificates and “Hilton” quota allocations will be distributed to packers who supply the domestic market at low prices, largely limiting Argentina’s exports in 2010.

TheCattleSite News Desk

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