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Cattle Supplies To Remain Tight

23 August 2011
Meat & Livestock Australia

URUGUAY - Meat and Livestock Australia (MLA) reports that Uruguayan cattle slaughter for 2011 and 2012 is forecast to fall to its lowest level since the countries' Foot and Mouth Disease (FMD) crisis in 2002, estimated at around two million head (Uruguayan Meatpacking Industry Association).

MLA states that the lower cattle throughput come as a result of a combination of factors, namely the severe drought in 2009, high live cattle exports, along with the very strong competition for land, especially from cropping enterprises.

Total Uruguayan cattle slaughter in 2011 is expected to fall nine per cent on 2010 levels, 23 per cent lower than the record number processed in 2006.

The lower cattle slaughter and beef production for 2011 has also been reflected in export volumes during the first seven months of 2011 (in a country that exports approximately 65 per cent of its production), falling 23 per cent year-on-year, to 121,234 tonnes swt.

MLA states that the resilient demand from Uruguay's export markets and higher global prices has resulted in a 37 per cent increase in average export prices during the seven month period, averaging $5,876/tonne. For the same period, cattle prices have risen 32 per cent, to 378USĀ¢/kg cwt.

TheCattleSite News Desk


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