September 2, 2009

Argentina slaughtered a record 1.5 million cattle in July, marking a worrying rate of herd thinning that will lead to shortages next year, the beef chamber known as Ciccra said in a report Tuesday (September 1).

 

The figures from 2008 and 2009 "constitute an extremely grave sign," Ciccra said. The beef sector "is operating at an unsustainable rhythm, due mainly to the liquidation of breeding animals, and as a result, cattle stocks."

 

During the first seven months of the year, almost 9.5 million animals were slaughtered, up 14 percent on the year, and marking some of the highest levels since Ciccra began keeping the data in 1990.

 

The female slaughter rate rose to 50 percent in July, well above the estimated 43 percent rate necessary to maintain herd size.

 

In addition to the large number of breeding cows sent to the slaughterhouse, production was increased due to the sharp increase in feedlots which enjoy government subsidies, Ciccra said. Drought in many areas also caused ranchers to thin their herds.

 

Based on foot-and-mouth disease vaccination records from 2008, there are 57.7 million cattle wandering across Argentina, down 5 percent on the year, Ciccra said.

 

In terms of volume, beef production during the first seven months of the year totalled just over 2 billion tonnes, a 14.4 percent gain on the year.

 

While tight supplies are expected next year, for now local and overseas consumers are benefitting from the high production.

 

Annual per capita consumption shot up to almost 74 kilograms (163 pounds) during the first seven months of the year, up 7 percent on the year. Argentine's lead the world in per capital beef consumption.

 

Exports also rose as the government eased restrictions on overseas sales. During the first seven months of the year, 310,099 tonnes were exported, up 38 percent on the year. Exports during the period were valued at US$175 million, up 29 percent on the year, Ciccra said.

 

The government has been encouraging shipments to generate export-tax and foreign-currency inflows. Last month, Production Minister Debora Giorgi announced a further loosing of the export requirements.

 

Previously, beef exporters had to set aside 65 percent of their production for the domestic market, but that amount was lowered to 30 percent. In addition, the companies no longer have to set aside the pricey cuts generally favoured for export.