October 18, 2007

Argentinean beef production falls as farmers turn interest towards crops

Argentinean beef production fell 1 percent in August compared with the same month in 2006, despite an increase of 6 percent in slaughter, from 1.28 million head in August 2006 to 1.36 million head in August 2007, according to Meat and Livestock Australia (MLA).

The main reason for the decrease in production was the fall in the average carcass weight, given the rise in the proportion of females and the marked decrease of steers in the total. Females rose from 41 percent to 49 percent of the slaughter in August.

The trend reflects a shift in farmer interest towards crops as government policies continue to lower beef prices through export restrictions and price caps

This is expected to generate supply constraints in the long term, the MLA said.