FAO predicts little growth for beef this year
09/08/2011
A 1% decline in production in developed countries, which account for 45% of global output, is expected by the Rome-based organisation. The contraction reflects the situation in Canada and the United States, which began the year with small cow herds, low replacement heifer numbers and even tighter feed supplies.
On the other side of the globe, weather-affected cattle inventories in Australia and New Zealand are returning to normal, but herd rebuilding is curbing slaughter and output.
Rebounding from a nearly 2% decline in 2010, beef output in Latin America and the Caribbean is on the upturn, with output growth in Brazil, the world’s second largest beef producer, more than compensating for the persistent downfall of Argentina’s beef sector, which has reportedly lost 3,500 jobs over the past few years. The only uncertainty related to the strong outlook for the Brazilian sector concerns the possibility of a removal of Brazilian meat plants from the list of farms eligible to export to the Russian Federation.
In Argentina, the reconstitution of depleted cattle herds and what the FAO calls “continued regulatory uncertainties” are undermining output prospects, despite a near doubling in live cattle prices.
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