December 8, 2006

 

Argentina's beef exports up 6.7 percent on-year in October

 

 

Argentina's beef exports in October totalled 55,481 tonnes, up 6.7 percent from the same month last year, the Argentine Beef Industry and Trade Chamber, Ciccra, reported Thursday (Dec 7).

 

October beef shipments were valued at US$164 million, 41.5 percent higher than October 2005 because of a 32.6 percent increase in export prices, Ciccra said.

 

In the first 10 months of the year, beef exports totalled 370,535 tonnes, down 23.4 percent in volume. The value of exports during the period was US$1.06 billion, down 4.8 percent from the same time last year.

 

In March, President Nestor Kirchner banned almost all beef exports to contain domestic inflation. However, the export limits were progressively eased to 70 percent of 2005 export levels during the same period a year ago.

 

Last week, the government announced the extension of the limits for the next 180 days.

 

There were rumours last week that the government was going to further limit beef exports to just 45,000 tonnes per month to keep down domestic prices. Faced with loud criticism from farm groups and the threat of a strike, the government backed off, deciding to maintain beef export restrictions at current levels.

 

However, farm groups pushed forward with the strike, which is expected to run through Dec 11.

 

Meanwhile, cattle feedlot producers in the country are also struggling to operate with the surging corn prices, other than government efforts to keep down beef prices, which are causing heavy losses in the industry.

 

"We're losing about 100-150 pesos (US$33-US$49) per head, Los Aromos feedlot operator Carlos Bonetto said.

 

Feedlots have been taking these losses for almost two months, Migul de Achaval of the Cactus Feedlot said in an interview with farm newspaper Infocampo.

 

Spot corn prices at the Rosario Cereals Exchange have risen over 30 percent since Oct 1, closing at 380 Argentine pesos (US$124) on Thursday. Spot corn reached as high as 400 pesos on Nov 30.

 

November cattle feedlot costs per kilogramme of meat were up 15.5 percent from the same month last year, according to a report prepared by the Argentine Feedlot Chamber.

 

With costs so high, feedlots have been decreasing their herds to minimise losses.

 

"The rules of the game aren't clear and people are leaving the sector ... When the situation becomes clear then they will think of getting back in," Bonetto said.