July 5, 2010

 

Uruguay facing cattle supply crunch

The Uruguayan meatpacking industry has become increasingly anxious about the high female cattle slaughter levels over the last two years.

 

According to analysts at Meat and Livestock Australia (MLA) the high slaughter levels are bringing concerns over the impact it will have on beef production in the future.

 

Uruguayan cattle slaughter rates increased in both 2008 and 2009, mainly the result of a severe drought that hit eastern South America – which also resulted in the loss of a large number of calves.

 

Assisting the higher female cattle slaughter levels of recent years was also the need for producers to maintain cash flows, enticed by periods of strong cattle prices, MLA said.

 

The Uruguayan Meatpacking Industry Association forecasts a drop in cattle supplies for 2011, which will impact export volumes.