MercoPress. South Atlantic News Agency

Current policies could force Argentina to import beef by 2012

Argentina could be forced to import beef by 2012 if current policies are not modified, but current tonnage could increase by 50% if rules are changed, warned the Argentine Regional Consortia of Agriculture Research, Aacrea.

"Argentina's livestock industry is sending powerful alert signals", said Belisario Alvarez de Toledo general coordinator of Aacrea, and "we are missing a great opportunity to expand because of rules governing domestic and foreign beef sales". During recent years the cattle stock has been falling (mainly cows), weight of carcasses is dropping and cattle breeding is being pushed to poorer areas where productivity is lower: "for each 100 cows forced to graze in poorer land we have 21 calves less". "Increasing regulations and government intervention in domestic and overseas trading of beef is greatly to blame for the situation", added Alvarez de Toledo. "Currently a calf is sold for the same price as in 2006, but costs since then have soared 50%". Alvarez de Toledo said that Argentina's cattle stock ceased to grow in 2005, but the number of animals sent to abattoirs keeps increasing which "obviously means a smaller stock". In this scenario, more cows being sent to slaughter and lighter carcasses, "we're going to have beef supply problems for the domestic market" particularly since consumption has increased and production is decreasing. "We estimate that at this rate by 2012 Argentina will have to import beef to supply the domestic market and we will disappear from international markets". However the cattle expert said there's still time for change if promotion conditions are sponsored and government ends intervening in markets, "this means four basic points: price, reliability, technology and farmers which combine these factors and ensure the sustainability of his farm and of the industry". "With the same number of cows we now have in Argentina we could produce 2.7 million more calves by simply ensuring the weaning ratio could be taken from 62 to 75%". And with similar advanced techniques "the current area with livestock could include an additional 5.7 million cows, equivalent to 1.5 million tons of beef, up 49% over the current volume".