Feedlots: numbers that start to raise alarm in Argentina

Published 2024년 8월 19일

Tridge summary

The article highlights a 3% year-over-year decrease in July's slaughter data and a nearly 10% drop in the first seven months of the year. Despite favorable climate conditions, the role of feedlots in the fattening process has increased, with 36% of animals now passing through them, up 2 points from last year. Slaughter weights have slightly improved to an average of 230 kilos per head in July. Although the corn/steer ratio is favorable, rising calf prices are hurting feedlot margins, leading to significant financial losses. The BCR suggests that to achieve profitability without changes in key input prices, the sale price of fattened beef needs to rise by 15% after taxes and financial costs.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The slaughter data for the month of July confirm a total of 1,252,127 heads processed in the last month, a figure that compared to July of last year is 3% lower and that in the first seven months of the year accumulates a total of 7,812,147 heads, reflecting a drop of almost 10 points compared to what was recorded in the same period of a year ago. Based on these numbers and in a climate-friendly scenario much more favorable than the one recorded last year, the growing participation of the feedlot within the fattening and finishing processes is surprising. According to the statistics published by SENASA based on the DTe, it is known that, in the first seven months of this year, 2,800,665 animals passed through the feedlots, which, measured on the animals slaughtered in the same period, represent 36% of the total, marking a linearly increasing trend in the last five years. In turn, this percentage exceeds last year's record by 2 points, given in a context of severe drought where the ...

Source: On24