Beef prices in Argentina are expected to climb next year after rising 13% before the holidays, when domestic consumption peaks.

Cattle shortages and drought are boosting year-end beef prices, said Arturo Llavallol, a board member at the Argentine Beef Promotion Institute.

Price of cattle on December 18 were ARS4.18 (US$1.09) per kg at Argentina's largest cattle market, up from ARS3.69 (US$0.96) a month earlier.

Cattle breeders are reducing production because the government has restricted exports and attempted to regulate prices since late 2005, said Llavallol.

Argentina's cattle herd has declined in the past year as the worst drought in a century damaged pastures.

Llavallol warned that there will be four million fewer head of cattle in 2010, as breeders' profit is down 22% compared to them receiving 30% of final sales price in 2005.

On August 27, Hugo Biolcati, president of the Rural Society, said Argentina may have to import beef in 2010 to meet domestic demand.