December 10, 2009

  

Argentina's October beef exports rise, but value down

 

 

Argentina's beef exports in October were up sharply on the year, but the value of those shipments fell steeply due to lower prices.

 

Argentina exported 54,667 tonnes of fresh and processed beef in October, up from 43,884 tonnes a year earlier, according to the latest data from agricultural health and sanitation service, Senasa.

 

But October's exports were valued at US$180 million, down from US$347 million a year ago.

 

Exports during the first 10 months of the year totalled 476,762 tonnes, up from 317,267 tonnes a year earlier. The value of exports from January to October was US$1.5 billion compared to US$2.7 billion a year earlier.

 

Russia was by far the top destination for Argentina's fresh beef exports, buying 117,270 tonnes during the first 10 months of the year. Chile followed with 34,972 tonnes, while Israel bought 26,897 tonnes, Venezuela 21,524 tonnes and Germany 17,424 tonnes.

 

Exports have risen sharply this year as total production soared. Ranchers have been trimming herds due to drought earlier in the year and a continued shift to using pastures for crops.

 

Between January and October, 13.7 million cattle were slaughtered, up 10% from the same period a year earlier, according to the beef industry chamber known as Ciccra.

 

The country is set to match the 1978 record of 16 million cattle slaughtered this year, according to Ciccra.

 

Domestic consumption rose 5% on the year to 2.45 million tonnes, Ciccra said in its December report. Argentines are among the world's top beef eaters, with per capita consumption of more than 73 kilograms a year. That's up 4% from last year and is one of the highest levels in the last 15 years.

 

However, the high output this year is expected to lead to shortages and higher prices in 2010, Ciccra said. Those higher prices will likely lead ranchers to withhold more breeding cattle and further tighten supply through 2011 and 2012.

 

There was a very high level of female cattle slaughtered, which indicates that ranchers are thinning herds. During the first 10 months of 2009, over 50% of the cattle sent to slaughter were females, with the rate needed to maintain herd sizes estimated at about 43%.

 

The herd culling has been going on uninterrupted for three years, according to Ciccra.

 

Based on the latest foot-and-mouth disease vaccination records, the country's herd fell 5% to 57.7 million cattle in 2008 from the previous year. Data from 2009 is not yet available.