Packer firms recovering in Uruguay
03/11/2010
This is the main finding of an exercise carried out by Montevideo-based livestock farming research organisation, the Instituto Plan Agropecuario (IPA). Using a method that measures the amount of beef produced per hectare of land devoted to raising cattle, the IPA said the sector was now 3% more productive than a year ago, generating 87 kilos of beef per hectare. It pointed out, however, that this is still well short of the amount the Uruguayan packer industry registered before the global financial crisis, which peaked at around 100 kilos of beef per hectare.
The price of beef has gone up by 16% in the last 12 months, IPA technician Carlos Molina said, so the value of livestock farmers’ production will be higher. Production costs are also increasing, by 13% Mr Molina says, but the higher value of beef is helping producers return to growth.
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