Meat Industry INSIGHTS Newsletter

990122 Argentina Launches Program to Buck Up Beef Output

January 8, 1999

Buenos Aires - Argentina's Agriculture Department launched a program aimed at increasing the country's beef output through more efficient production and a bigger herd.

Agriculture Secretary Gumersindo Alonso said the National Cattle and Beef Program, managed by the department and financed by banks, will strive to increase Argentina's stock by 20 percent in five years from the current 51 million head.

“We want to increase production capacity,” Alonso said at a news conference.

Argentina is currently the world's fourth largest beef exporter and its grass-fed product has a fine reputation for quality and flavor.

Nevertheless, the country's beef exports in 1998 are expected to sink to 280,000 tonnes, their lowest level in a decade. Shipments have been cut down by a cattle retention cycle, high internal beef prices and dampened demand blamed on Europe's mad cow disease and financial crises in Brazil and Asia.

Argentina's domestic consumption is steady at about 2 million tonnes of meat a year.

“We hope to at least double our current exports in five years,” Agriculture Undersecretary Miguel Sobrero said.

That would take shipments back up to levels hit in 1995, when 519,722 tonnes were exported.

The new project aims to increase producers' profits, improve beef quality and eliminate rampant tax evasion in the sector. It will also push the creation of a cattle futures market, increased use of technology and compatible sanitary regulations.

Other program goals include promotion of Argentine beef overseas and maintenance of the country's status as free of foot and mouth disease.

Freedom from the latter, granted in 1997, led to the quick aperture of new markets in China, the United States and Taiwan.

Targetted future markets include Mexico and Japan, Alonso said.

This Article Compliments of...

Iotron Technology Inc.

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