September 2, 2010

Argentina's cattle herd falls

According to a recent report from the Argentinean Foodstuff Quality and Safety Service (SENASA), the Argentine cattle herd fell 15% in the past two years to 48.95 million head.

The sharp fall in the national herd is primarily the result of producers shifting away from cattle production to more profitable agriculture enterprises, such as cropping.

Additionally, government intervention in recent years has also influenced producers to move out of the cattle industry, while the severe drought experienced during 2008 and 2009 contributed to higher slaughter numbers and poor breeding rates.

At 48.95 million head, the Argentine cattle herd is at its lowest level since 2001, and peaked at 60.1 million head in 1977 (IPCVA).

According to local analysts, the loss in animal numbers is equivalent to 500,000 tonne cwt decline in annual beef production (or 13 kg/person per annum). Argentine beef production in 2010 is forecast to decline 24% on-year, to 2.6 million tonnes cwt.