March 26, 2012

Argentinean beef exports fell 16% on-year in 2011, to 129,484 tonnes, continuing the downward trend of the past 10 years and registering the lowest yearly total since 2001, according to reports.

The decline in export volumes during 2011 has resulted in Argentina slipping from the fourth largest global beef exporter to just inside the top 10.

The decline in export volumes coincides with a 5% on-year reduction in beef production over the same period, to 2.5 million tonnes. The fall in beef production and subsequent decline in exports reflects the intention of Argentinean producers to rebuild the cattle herd, which underwent liquidation during 2009 due to the severe drought.

In comparison to the record high export year of 2005 (437,547 tonnes) and to that of 2009 (379,290 tonnes), beef exports were 70% and 66% lower, respectively, in 2011. Furthermore, government intervention to increase the available domestic supply, combined with uncertainty over future government policies, has also underpinned the lower export volumes.

Total exports to Germany (25,127 tonnes) and Israel (24,330 tonnes) during 2011 declined 5% and 8% on-year, respectively, while shipments to Chile (21,876 tonnes) increased 22% over the same period. The rise in exports to Chile was almost exclusively in chilled product, with volumes increasing 24% on-year, to 21,589 tonnes. Exports to Russia over the past few years have fallen considerably, particularly from the 171,000 tonnes sent in 2006 and the 139,000 tonnes shipped in 2009. Total volumes sent in 2011 were 15,431 tonnes -- 47% lower than 2010.

Despite the reduction in overall beef exports, chilled shipments surprisingly increased 1%, to 62,846 tonnes.

Correspondingly, frozen beef exports fell 28%, to 66,638 tonnes. Total export returns for 2011 increased 10% on-year, to US$1.15 billion, with values improving across most major export markets despite the significant reductions in shipments.