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Drought Puts Pressure on Argentina's Beef Breeders

21 May 2009
Meat & Livestock Australia

ARGENTINA - Argentinean cattle breeders are forecasting intense disinvesting this year, mainly the result of the severe drought affecting the central-east region of South America since last year and the current financial difficulties facing the industry.

According to Meat and Livestock Australia, given the lack of forage and increasing financial pressures, many breeders have been forced to market their cattle earlier, creating restocker oversupply (animals under 150kg), with prices falling by around 20 per cent during May.

In addition, the industry lacks support from the government, which has established a series of restrictions since 2005 to encourage production of light steers for the domestic market through payments to lotfeeders – measures which aim to increase local beef supply in the short term.

Although many breeders aim to leave the industry, due to the negative prospects and low profitability, most of them are located on land that is not suitable for other agricultural enterprises.

TheCattleSite News Desk


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