October 16, 2009

Argentina's beef exports increased 66 percent on-year to 237,840 tonnes swt during the first eight months of 2009, due to an oversupply in the domestic market.

Local beef consumption has reached 73.9kg/head, up seven percent on-year, due to higher slaughter and relaxed government export restrictions.

The Argentinean Beef Industry Chamber (CICCRA) estimates that slaughter has increased 16 percent to reach around 11 million head in the current calendar year to August, with total slaughter remaining stable.

However, CICCRA reported that the estimated 50 percent of female slaughter in the total is a concern for the industry, as a sustainable rate should be 43 percent of female.

As a result of the higher slaughter, drought-related cattle losses, lower calf production, and the higher turnover of young cattle fuelled by subsidies to the feedlot industry, the total herd is estimated to have fallen by 4.9 percent on-year, with the cow herd falling 6.3 percent.

Experts have warned that this may lead to the worst scenario of Argentina being forced to import beef in the near future.