November 24, 2006

 

Argentina to ease slaughter weight rule to boost beef supply

 

 

Argentina would lower the minimum slaughter weight requirement for beef for 90 days to increase supply and prevent price hikes in the upcoming summer barbecue season, according to reports.

 

The government would be modifying the minimum allowable slaughter weight from 280 kg to 260 kg for 90 days, reported a local newspaper.

 

The government imposed the minimum weight last year to force ranchers to raise heavier cattle, hoping this would eventually lift the average slaughter weight and boost national beef production.

 

The move is the latest in a series of measures designed to increase supply and keep down beef prices.

 

The average Argentine eats about 66 kilograms of beef per year, the highest consumption rate in the world.

 

Faced with recently climbing beef prices, the government has allegedly been circulating a list of reference prices for certain cuts which vendors at the nation's principal slaughterhouse are 'recommended' to honour.

 

In March, Argentine President Nestor Kirchner banned almost all beef exports to prevent soaring domestic and international demand from pushing beef prices up. However, the limits have been progressively eased and are set to expire in at the end of November.

 

Many ranchers have long opposed the idea of a minimum slaughter weight, saying it interfered with their ability to meet the strong local demand for lightweight cattle.

 

Argentina has one of the lowest average slaughter weights in the world, according to Agriculture Secretariat officials.

 

Last year the average slaughter weight hovered around 204 kilograms, compared with 350 kilograms in the US.