Beef production falls 13.2% in November in Argentina

Cattle in a field in the province of La Pampa, Argentina, November 2, 2021. Picture taken November 2, 2021. REUTERS / Nicolas Misculin

BUENOS AIRES, Dec 14 (Reuters) – Argentine beef production fell 13.2% in the year-on-year comparison in November, to 253,000 tons, due to a lower number of slaughtered animals in a context of regulatory policies applied by the government, the Ciccra meat industry chamber said Tuesday.

Argentina is a recognized producer of beef and its shipments position it as the fifth international exporter.

However, in the last year the Government has applied limits on exports and controls on domestic prices for bovine cuts, which has had an impact on activity.

“The beef value chain faces a scenario of farm shortage,” Ciccra said in its monthly activity report, where it clarified that between January and November, Argentine meat production fell 6.4% year-on-year to 2, 7 million tons.

The chamber clarified that as a consequence of a period of strong liquidation of females -whose cuts are those bought by the largest importer of meat from Argentina, China- between 2018 and 2020, this year there was a lower supply of calves for the slaughter.

“Official interventions prevent the price system from reflecting the relative scarcity of livestock and beef and generating the necessary signals for livestock producers to regain bellies and increase the number of calves in the future,” Ciccra explained in his report.

Last week the Argentine government announced – after meeting with agricultural leaders – that it will reduce the limits that exist on meat exports and the details of a plan to boost livestock production, which includes subsidized credits and incentives for investment.

(Reporting by Maximilian Heath; Edited by Nicolás Misculin)