January 3, 2008

Argentina's 2008 beef exports seen steady at '07 levels

Beef exports from Argentina are seen stable at 480,000 tonnes as its government tries to stifle overseas sales to prioritise domestic consumption, according to a report by the US Department of Agriculture.

Strong world demand as well as strong currency will pull up FOB prices but priority will be given to the highly profitable Hilton Quota (as from 2008, Argentina will have a 29,000-tonne quota) and to exports to the European Union of premium chilled cuts outside quota.

Argentine beef exporters are also raring to enter the US market for fresh and frozen beef because of higher prices. The US has banned Argentine beef since March 2001 due to the spread of foot-and-mouth-disease. Producers are also eyeing the booming Chinese hotel industry for its premium cuts and gradually, they have already penetrated Hong Kong.

Beef production for 2008 is seen at 3.1 million tonnes (cwt). The average weight per animal came down significantly in 2007 and it is expected to remain at a similar weight in 2008. A very wet autumn, followed by a dry and cold winter, and higher corn prices negatively affected the finishing weight of fed cattle in 2007. 

For more of the USDA report, please click here