April 27, 2007

Argentina cattle herd contracts

The Argentine Beef Industry and Trade Chamber (CICCRA) reports a strong increase in the proportion of female cattle slaughter over the past six months. The liquidation of female cattle came at the same time the government capped prices of live cattle transactions in Liniers¡ªArgentina's main cattle market.

According to the CICCRA, the increased slaughter of female cattle is due to lack of competitiveness of the industry against other agricultural crops. Producers' loss of confidence and the lack of long term stability due to the continuous government interventions in the cattle and beef market were also pointed as the main factors for the decrease.

During the first two months of 2007, the proportion of female slaughter reached 45.8 percent, compared to 40.7 percent in the same period in 2006. Female calf slaughter was particularly high due to the reduction in the minimum slaughter weight from 280 kilogrammes to 240 kilogrammes.