Argentina: The bad memory of the 2008-2010 drought worries farmers

Published Dec 14, 2022

Tridge summary

Cattle farming is facing a crisis due to dry conditions, potentially leading to a situation similar to 2008-2010 when 10 million cattle were lost. The dry conditions have resulted in increased animal mortality, low pregnancy rates, and high slaughter, leading to a decline in the national stock. Despite an increase in exports, meat production has stagnated, with numbers remaining unchanged and preventing the activity from growing. The domestic market has seen little rebound in cattle prices since the middle of the year, and exporting refrigerators has become a challenge due to a drop in the price per ton paid by China and Europe.

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Original content

The lack of rains that impacted the entire production scheme set off alarm lights in cattle farming, which continues to be unable to increase the beef stock. According to the Rosario Ganadero Market (Rosgan), the current dry scenario may lead to a scenario similar to what was experienced between 2008 and 2010, when about 10 million head of cattle were lost. After those two complex years for the activity, the productive numbers remained stagnant and did not allow takeoff. "In 2020, we had barely managed to recover about 6 million, registering a stock of 55 million heads nationwide," they warned. In this period there was an increase in exports, but they pointed out that in the absence of a policy that stimulates the growth of the herd, meat production stagnated above 3 million tons. Of that figure, just over 70% is destined for domestic consumption and the rest is devoted to foreign trade. Some figures remain unchanged and explain why the activity does not take off: one of them is ...

Source: ARabc