September 24, 2010

Uruguayan beef exports to grow in 2011

Higher Uruguayan beef production, combined with rising global demand will assist a 2.6% growth in beef exports next year to 400,000 tonnes, according to the USDA.

Uruguayan beef production is expected to grow 1.7% in 2010, to 600,000 tonnes cwt and remain stable in 2011, with exports rising 3% to 390,000 tonnes this year.

Given the forecast growth in Uruguayan beef exports for 2011, with production steady, domestic beef consumption is forecast to decline 5% to 200,000 tonnes cwt. Uruguay exports around two-thirds of its annual beef production.

According to the USDA, the fall in the volume of beef consumed in the domestic market for 2011 will be partly offset by higher consumption of lower priced chicken.

Cattle slaughter in Uruguay has risen in recent years, despite a relatively stable herd of around 11 million, with a move towards more intensive livestock production. Like many South American countries in recent years, a higher return from cropping has seen cattle production shift towards lower value land, with a corresponding increase in demand for feed grain.

Total Uruguayan exports during the first eight months of 2010 increased 4% on-year, to 171,568 tonnes shipped weight (swt). Exports to Russia rose 34% to 55,809 tonnes swt, due to lower supplies from Brazil and Argentina, while exports to the EU dropped 24%, to 33,369 tonnes swt.