Analysis of indicators

Date: 09/26/2011

INAC's Information Director released to the media the slaughter and export figures for the agricultural year July 10/June 11, in the framework of activities programmed by INAC at Expo Prado 2011.

Engineer Pablo Caputi stated that the slaughter of the most important species - cattle and sheep - is facing a severe supply restriction due to several factors, such as the 2008-09 drought, or cattle restocking. Alternative meats, especially pork and horse meat increased their market share, leading to some diversification of slaughter.

In the case of beef, slaughter reached 2 million 18 thousand cattle heads, the lowest figure in the past 7 years.

Sheep meat - Slaughter reached 1 million 105 thousand sheep heads, the lowest figure in the past 6 years.

Pork – Slaughter was of 188 thousand heads, one of the highest numbers in this decade.

Horses – Slaughter was of 46 thousand heads, the highest figure in this decade.

Caputi pointed out that the positive datum of this year is that cow slaughter fell, which may mean that stock will not decrease. Steer age at slaughter has stopped falling, mainly because slaughter weight has increased: more time is needed to meet the desired weight.

Slaughter per Department of origin has shown changes that accompany agriculture dynamics.

As regards exports, the meat sector has successfully overcome export volume drops thanks to high prices. The year closed with some USD 1,450 million income, of which beef exports accounted for USD 1,168 million, due to steep increase of the average price.

Caputi said that the most critical period for beef livestock is beginning, for the effects of the latest drought will reach its peak in 2012. So far, the sector has had a very good performance considering prices, although volumes have weakened.

The main challenge for both cattle and sheep farmers are to generate investment conditions.

The general outlook is dynamic, with almost imperceptible changes in Departments of origin, cattle weight, and production systems.

With regard to destinations, regularity of recent years is maintained – the Russian Federation comes first, followed by the European Union, and both represent more than 50 %, in volume and in value. The remaining destinations have kept stable, which has allowed for good diversification in over 100 markets opened for beef.