MercoPress. South Atlantic News Agency

Agro Uruguay

Record low flock / Uruguayan beef makes a come back

The Uruguayan flock will have signaled an all time low by next June 30 when sheep numbers reach 11,152,000, the smallest population since early last century. In its best years Uruguay had a flock ranging between 25 and 28 million, mostly double purpose Corriedale. Since the collapse of wool prices in 1989 the numbers have consistently dropped, including an additional 8% in 2001, according to official Agriculture and Livestock Department statistics.
However there are indications of a possible reversal of the situation given the recovery of international wool prices, and overseas opportunities to sell quality organic lamb and mutton.
Slaughtering in Uruguayan abattoirs during the last twelve months has dropped 47%, from 1,83 million in 2001, to 1,1 million in the same period this year, meaning farmers are holding back on reproductive and wool producing categories. Live sheep sales overseas have also plummeted dramatically with exports below 200,000 head. But even when farmers are trying to increase their flocks, weather conditions have not been favourable: lambing was 56% in 2001 compared to 62% in 2000, and 70% in normal seasons. Besides, this last summer excessive rains caused an additional 12% mortality among spring lambs and other sanitary problems.
The Uruguayan Wool Secretariat estimates that if wool prices remain strong the Uruguayan flock will reach a turning point this 2002/2003 season, gradually beginning to recover towards a more manageable number between 16 and 18 million sheep.

Uruguayan beef makes a come back
After the devastating effects of foot and mouth disease outbreaks last year, Uruguay's foreign sales of beef are expected to begin recovering and reach 200,000 tons this year. In normal years Uruguay was exporting between 350,000 and 400,000 tons of beef, sheep meat and other by products.
Dr. Recaredo Ugarte, Director of Livestock in the Uruguayan Ministry of Agriculture indicated that the during the first quarter of 2002 Uruguay shipped overseas 60,000 tons of beef, compared to 95,000 tons a year ago. The FAM outbreak was confirmed in April 2001. The European Union with 15,000 tons was the leading client, followed closely by Israel with 12,000 and Egypt 5,500.
"Although we're constantly in the outlook for new markets, our target is the recovery of Nafta (United States, Canada and Mexico), which will still require some time given the legal sanitary shortcomings", said Dr. Ugarte in direct reference to the FAM limitations on sales to those countries.
Before the outbreak of FAM in Uruguay, which came over from Argentina and Brazil, Nafta countries had become the main destination of Uruguayan beef and with the highest prices.
Although Uruguay has now recovered the condition of free of FAM with vaccination, and has resumed sales to the European Union, before it can send fresh cuts to United States and Mexico it must be declared free of FAM without vaccination.