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Argentina drought resulting in beef imports for 2010 04 Jun 2009
A major drought is causing Argentina to consider importing beef for 2010.
Argentina is estimating a 15% drop in production in 2010. According to reports, beef production next year will plummet from 3.11 million tonnes in 2009 to 2.67mt in 2010.
Import to meet domestic demand
Import to meet domestic demand
If this is the case, the country will have to import at least 1000t to meet domestic demand.
Argentina’s livestock has been traditionally in the range of 55-60m head, however next year it is forecasted to drop to 47.9m, which in practical terms means 438,000t less beef.
Financial crisis
According to Meat and Livestock Australia, Argentinean cattle breeders are predicting intense disinvesting this year. This is due to the severe drought affecting the central-east region of South America since last year and the current financial crisis the industry is dealing with.
Argentina was the world’s leading exporter of beef 50 years ago. The drought is also causing beef farmers to leave the industry.
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