Argentina’s husbandry sector suffers
Argentina's husbandry sector is in a worrying state. In 2008, the herd was down 1.3 million head compared with 2007 and beef exports have fallen 45% in the last four years. Slaughter numbers have increased but beef production has dropped.
It seems cattle breeding is experiencing one its worst spells in the country’s history just four years after price controls and export restrictions were introduced. Desperation, mainly caused by drought, has led to an increase in cow slaughter which, in some months last year, accounted for more than 50% of the total slaughter. In the first ten months of the year, 280,000 more cows were slaughtered than in the same period in 2007.
However, reports indicate that these problems are only affecting Argentina. During the same period, Brazil consolidated itself as the main beef and leather exporter in the continent and turned its largest meat packing companies into international businesses; Uruguay surpassed Argentina in exporting terms; and Paraguay has doubled its beef shipments in the last four years.
According to Argentina's Rural Society Economics Institute (IEE), the cost of cattle breeding rose 40% in 2008. This has hit breeders hard as they are producing at a loss because the price of their main products (cows and calves) stayed at the same level as in 2007 while costs rose. Because of low cow pregnancy rates caused by the dry spell, there is expected to be a significant shortage of calves in 2010.
