In Argentina a drought is killing cattle and export controls have encouraged cattle ranchers to quit the business. This is not good news for the largest beef-consuming nation in the world. As a result, the nation may have to turn to importing beef for the first time in two years.Due to dried-up pastures and high feed prices, some farmers believe they have no choice but to let livestock die in their fields. As Matthew Craze writes for Bloomberg.com, ranchers are killing their breeding stock in higher than normal numbers, which in turn threatens future output. Sicne 2006, Argentina has restricted beef exports to boost local market supplies. Over the same time period the nation’s herd has been reduced by 7%.
Craze reports that Arturo LLavallol, director of the farm group The Rural Society, believes that this situation may lead to beef imports for Argentina in the coming years. The typical Argentine will consume roughly 154 pounds of beef this year. This number has increased since the export restriction was put in place.
According to the United States Department of Agriculture, while Argentina was the largest beef exporter in the 1970s, Brazil is expected to ship four times as much beef as Argentina this year. Central and western parts of the Buenos Aires province are suffering from a drought that has prompted many ranchers to sell off their herds. Ranchers are currently hoping the El Nino weather pattern will bring enough rain to alleviate the drought.
If the rains don’t come, then neighboring countries could experience a boon in exports to Argentina. In the meantime, many Argentine ranchers will look to the sky for some relief. To read the Craze article click here.
Posted: 08/19/09
