February 8, 2011

Uruguayan cattle slaughter decreases in 2010

Uruguay's cattle slaughter dropped 5% to 2.2 million head in 2010, as cattle supplies continued to stay tight on the whole, while its cattle turnoff was estimated at 2.4 million head, with almost 200,000 head shipped live in 2010.

High global and domestic demand, combined with tighter numbers influenced the recovery in Uruguayan live cattle prices in 2010. For 2010, the heavy steer indicator averaged 35% higher on the previous year, at US$1.51/kg lwt.

An improvement in the local economy helped to ramp up Uruguayan beef demand in 2010, with average domestic consumption increasing to around 57kg/head per annum.

Following the reduced beef production and increased domestic consumption, Uruguayan exports for 2010 declined 7% on-year, to 241,172 tonnes swt - making up 65% on total beef production. In 2006, beef exports made up 76% of total beef production.

The Uruguayan export industry in 2011 is reportedly focused on increasing access to high value markets, such as South Korea. For 2011, cattle slaughter is expected to remain at similar levels to 2010, with little increase in exports.