June 17, 2013

South American beef production to expand over next decade

South American meat production is forecast to increase dramatically and will account for approximately 80% of the additional output by 2022.

This is according to the latest agricultural outlook by the Food and Agriculture Organization (FAO) and Organization for Economic Co-operation and Development (OECD) for 2013-22.

World meat production growth is expected to only increase at 1.6% per year for the next decade, down from 2.3% per year during the previous decade. Brazilian beef production is forecast to increase 10.6% over the next decade, to 11 million tonnes cwt, with domestic consumption accounting for 85% of total production (30 kg/person/year - average for the next decade). Over the same period, Brazilian beef exports are expected to rise 24%, to total 1.88 million tonnes cwt. Poultry meat production is also forecast to rise 20% for the next decade, to 16.2 million tonnes cwt, with domestic consumption rising to 47 kg/person/year.  Pig meat production is expected to total 3.98 million tonnes cwt by 2022, an increase of 17% for the decade. 

According to OECD-FAO, Argentinean beef production is forecast to gradually increase to 3.2 million tonnes cwt by 2022, an increase of 21% on the following decade. Argentinean beef domestic consumption should remain as one of the highest in the world, expected to average 42.5 kg/person/year. Interestingly, exports are forecast to jump 182%, to total 526,000 tonnes cwt by 2022.

Uruguayan and Paraguayan beef production is also expected to grow, up 30% and 46%, respectively. Uruguayan exports should account for 73% of production, totalling 482,000 tonnes cwt by 2022, while Paraguayan exports are forecast to increase 52% in the coming decade.