December 13, 2004

Argentina To Export 1.3 Million Ton Of Beef By 2014

Argentina, one of the world's top beef producers, aims to boost exports of the product to 1.3 million metric tons by 2014, Agriculture Secretary Miguel Campos said Friday.

"Over the next 10 years we're going to double beef production in our country, moving from 2.65 million tons in 2003 to almost 4 million tons," Campos said in an exclusive e-mail interview with Dow Jones Newswires.

"At these production levels, beef exports could reach 1.3 million tons by the year 2014, with sales totaling almost $2.8 billion," he said.

In 2003, Argentina's beef exports totaled 379,366 tons, or $694 million, according to Argentina's animal and food inspection agency, Senasa.

Campos said production will rise as ranchers implement better growing techniques and increase the average slaughter weight. Argentines tend to slaughter young and lightweight animals, which keeps production down.

The average slaughter weight currently hovers around 452 pounds per head, compared with 1,267 pounds in the U.S, according to the Argentine Beef Industry Chamber and the U.S. Department of Agriculture, respectively.

Because of this, local analysts say it should be easy to boost production once ranchers begin to see the benefits of slaughtering at a higher weight.

Argentina will export more than 600,000 tons of beef in 2005, according to the USDA. This year exports should total 540,000 tons, the USDA said.

Argentina exports beef to 83 countries, with the main markets being the U.S. (for processed but not fresh beef), the European Union, Russia, Chile and Venezuela. China also is expected to become a serious market in the near-term.