Argentine beef production during the March quarter dropped 19% on-year to 644,879 tonnes cwt, mainly due to the fall in grown cattle supplies since December.

Additionally, the tightening in export restrictions by the government has hastened the closure of several export plants.

Beef production in Argentina also decreased during the March quarter in 2008 – the result of a general agricultural strike, as the industry protested against export tax rises and the government's interventions and controls in agricultural industries.

However, in 2009 production increased during the period, as a severe drought and the ongoing liquidation induced higher cattle marketings, as producers switched to other more profitable and less government-controlled agricultural enterprises.

The current fall in production has resulted in an 18% fall in average beef consumption to 56.5 kilogramme/per capita a year, according to CICCRA, the Argentine Beef Industry Association.

Domestic market has been affected to a higher extent, as exports decreased by a lower percentage than total production during the period, added the association.