June 14, 2007

Argentina's beef production keeping pace with 2006 levels

Argentina's beef output in March posted an equivalent fall by six percent drop to 10 million tonnes in the corresponding month in 2006 but its higher year on year production in January and February almost cancelled out March's deficit, according to analysts at the UK Meat and Livestock Commission (MLC). 

The MLC said figures from Safras & Mercado show that 242,000 tonnes of beef were produced in March but first quarter beef output only reached 739,000 tonnes, marginally lower than for the same period of 2006.

Production for 2007 as a whole is currently forecast to rise by two percent to around 3.1 million tonnes, MLC says.

While export forecast may considerably vary, a balance given the limit on exports and taking into account corned beef and international agreements will restrict possible increases this year, said MLC. However, Argentina's "free from foot and mouth disease with vaccination" status granted by the World Animal Health Organization, may regain the country's efforts to access the North American market for chilled and frozen beef.

According to the MLC, the export restrictions imposed by the Argentine government have successfully stabilised domestic beef prices. In an official bulletin, restrictions will be extended until the end of 2007 to maintain price stability.

During the first four months of this year, Argentina exported nearly 23,000 tonnes, or 24 percent less fresh and frozen beef than in the same period in 2006. The decline was due to a fall in trade with non EU-27 countries, in particular Russian exports which fell by over 60 percent to 17,000 tonnes as it sourced alternative supplies from Paraguay, Uruguay and Australia.

Trade with EU-27 member states increased marginally, to just under 17,000 tonnes as a result of increased imports of Argentine beef by Germany, the Netherlands and Spain.

The Argentine Department of Agriculture predicted the country will fall to seventh place in the worldwide ranking of beef exporting countries due to continued restrictions.