March 3, 2011
 

Argentine cattle slaughter reaches lowest levels

Argentine cattle slaughter dropped to its lowest levels in several years, at less than 900,000 head per month, as producers and feedlots keep animals longer to increase average weights and reach positive margins.

Argentine feedlots are at around 49% capacity and they might be expected to reach 60% capacity, or five million head marketed by the end of the year. However, high feeder cattle prices have caused feedlots to retain cattle longer and increase slaughter weights to get more revenues. Argentine lot feeders have emphasised that the industry may experience severe financial difficulties if grown steer prices decrease from the current high levels of around US¢200/kg lwt.

Although the high restocker and feeder prices are results of the herd rebuilding, after the country lost 20% of the herd, or 10 million head in three years, the recovery of numbers has been slower than expected.

Meanwhile, the Argentine government recently started a new official cattle category, the Young Full Male, aiming to promote the marketing of more productive animals. The category is similar to the Australian Young Bull, which must weigh no more than 500kg before 24 months of age at slaughter.