Argentina: feedlots far from full

13/12/2010
Reports from Argentina suggest that the country’s feedlots are only 56% full this summer. Feedlot operators have complained that the cost of live animals is too high and the price they are able to receive for cattle going to slaughter too low.

In 2009, the feedlots ran at 88% capacity and provided between 40% and 50% of the total slaughter across the country. Operators enjoyed government subsidies on the price of grain, always with a view to keeping the price of beef low for Argentinean consumers. Those subsidies have been removed.

Statistics show that cattle production in Argentina for the first nine months of 2010 was 22% down on the same period last year.