MercoPress. South Atlantic News Agency

Argentine beef exports soared 57% last year but trend “is not sustainable”

Cattle extraction last year totalled 16 million when the average number is 12 million head

Argentine beef exports last year soared 57% in volume and 11% in value compared to 2008, having totalled 419.000 tons and 1.65 billion US dollars according to an official release from the country’s National Food Health and Quality Service, Senasa.

Of that total, 316.000 tons were fresh beef (1.3 billion USD); 35.000 processed (129 million USD) and 22.000 Hilton cuts quota totalling 217 million USD.

“2009 was a good year for volume, but with low prices because the market was unable to recover values previous to the international crisis”, said an Argentine beef industry source. The surprising percentage increase over the previous year (2008) can be attributed to the long standing conflict with farmers that virtually froze for several months Argentina’s exports.

“The growth in exports is because farmers are getting rid of their herds, therefore it is not sustainable. Neither is sustainable the rate of killings in 2009, 16 million head, when historically it has been in the range of 12 million”, said Miguel Schiariti, president of the Argentina’s Meat Industry and Commerce chamber, Ciccra.

For Alfredo Narduzzi, deputy head of the Argentine Rural Confederations, CRA, the surge in exports only helped a few. “For the farmer able to survive it was good, because the increase in exports and consumption helped recover the price of cattle. But others had to reduce capacity and the increase in cattle prices was not sufficient to offset the cost of ending exploitation and was also left out of the export surge”.

Regarding prospects for this year with exports partially frozen and a judicial dispute that suspended the distribution of the Hilton quota “the scenario for beef looks complicated”, according to industry sources.

“Exports can be expected to drop 40% in volume at least. We must not forget that many cows were sent to market and the overall herd is down by seven million head”, indicated Schiariti.