La Niña and the livestock crisis in Argentina

Published Mar 15, 2023

Tridge summary

Argentina's beef cattle industry is being challenged by the La Niña weather pattern, leading to drought and pasture degradation in half the country. This has negatively impacted calf production, with a lower projection for 2023 and fewer pregnancies due to poor grazing conditions. However, there are no significant livestock losses yet. The industry is investing in technology and better management practices to mitigate the drought's impact. The drought is also affecting agricultural production, with significant losses expected in wheat, barley, corn, and soybeans. Despite the reduced production, there should be enough maize to meet local livestock demand. Feedlots are experiencing high occupancy and low or negative returns due to high feedstock and corn prices.

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

Original content

Argentina's beef cattle industry is facing significant challenges due to the La Niña weather pattern, which has caused drought in most parts of the country. According to a USDA report released on the 14th, about half of Argentina's pasture area is in poor condition, leading to severe degradation in pasture conditions and production problems. The report highlights key calf production areas that suffer from poor grazing conditions, leading to a significantly lower calf crop projection for 2023. Despite having a "younger" herd of cows, most analysts predict lower pregnancies. In recent years, ranchers have been sending large numbers of cull cows to market, taking advantage of the high prices paid by beef exporters serving the Chinese market. Although the calves that will be weaned in the fall of 2023 will be in large numbers, they will likely be leaner than usual. Many calf operations use early weaning to help cows regain body condition for the next service season. The good returns ...

Source: Agrolink