August 26, 2010

Argentina's beef consumption takes a downturn

Beef consumption in Argentina has declined sharply over the past year, falling to 56.7kg/person, due to tighter beef supplies since December 2009 and soaring beef prices.

Argentina has traditionally been a high volume consumer of beef - consuming close to 70 kg/person per year for decades, with a preference for forequarter cuts from young light animals.

In contrast, loin and round cuts from heavy steers have been typically exported to higher priced markets such as the EU under Argentina's 28,000-tonne Hilton quota, which is not expected to be filled this year because of tight supplies.

Beef consumption in Argentina is also expected to remain constrained at least for a couple of years, as producers retain heifers to restock given the spike in cattle prices.