September 30, 2005

USDA: Argentina livestock and products annual report 2005

Argentine beef exports for 2006 are projected at 720,000 metric tons, the highest of the past 25 years. This is a result of improved profitability as FOB prices are forecast to remain attractive, a strong world demand, and the continuation of the opening of new markets.

Although Argentine top beef exporters are close to full capacity, there is still room for further export expansion in the future. Investment in the sector, especially adding new capacity, has not been significant over the last decade or so. 

As result of a good sanitary status with no Foot-and-Mouth Disease (FMD) or BSE, and very competitive FOB prices, Argentina is penetrating more markets every year.  Argentine beef exports through June 2005 totaled 242,000 tons (in product weight), 70,000 tons more than the same period last year. 

Exports to the Russian Federation in this same period also increased 70,000 tons. The Russian Federation, which will end 2005 as the leading market by far, is expected to continue to be a strong market in 2006.

The EU has also been a good market for Argentine beef.  Argentine beef exports in 2006 are projected to increase somewhat. Shipments in 2004 were 23 percent higher and a slight increase in volume is expected for 2005. 

Some local exporters point out that French buyers, which have never looked at this region as a beef supplier before, are currently in conversation with local packers to develop special beef products for their market.

For the full USDA report, click here.