September 26, 2008

Cattle prices slide in Uruguay after August peak

Live cattle prices in Uruguay have begun to drop significantly, following the meat industry's decision to soften activity, with a drop in demand from Russia and to a certain extent, the EU.

Mecro Press reports that Uruguayan cattle breeders' live prices has been rising since the beginning of 2008 due to the lack of winter supply of cattle and strong export demand. The need was escalating so much so that cattle prices in Uruguay were above those paid in the US, Australia and Brazil.

That resulted in live cattle prices dropping to 11 percent, from US $3.70 to US $3.30, with continuous decline but not many sales.

However, Mecro Press says that it must be taken into account that since spring 2007, Uruguayan farmers have been forced to send cattle to the abattoirs because of the insufficient rain fall and dried pastures, in preparation for the winter months.

The number of cattle slaughtered in abattoirs is proof of the trend, with a very high volume in May and June followed by a moderation in July and a steep drop in August.