Argentina's beef sector is weakening from political interference, and Uruguay's beef industry is looking to take advantage of that problem.

The powerful beef industry of Argentina is looking more like a dying battery nowadays, as political decisions by the government are changing the industry scene to the point that the country may be forced to become a beef importer by 2010.

The changes have driven away investors, reduced the size of Argentina's herd and given Uruguay the chance to gain a bigger market share on the global scene. Yet even with Argentina's problem, Uruguay may still have a long way to go before it could even dream of replacing its South American neighbour.

Silvana Bonsignore, director of marketing at the National Meat Institute, cited a 2004 study of four US cities - Atlanta, Boston, Denver and Washington, showing that many Americans had never heard of Uruguay the country, let alone its beef.

Uruguay wants to show the world it is dedicated to natural beef – grassfed and hormone-free by law. At the same time, more beef investors have taken a shine to Uruguay's more market-friendly policies.

Terry Johnson, owner of BPU Meat, is investing US$150 million in Uruguay, including in a plant scheduled to open in January that will be able to process 1,500 cattle in one eight-hour shift.

Johnson said the Argentine government has brought its agribusiness to its knees, while Uruguay offers a chance to do things right.