Argentine Cattle _ Beef - Lmic2.info by yaofenji

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									    ARGENTINE CATTLE/BEEF
        SECTOR - 2007
•   Stock 51.4 million head
•   21 million cows (10% dairy cows)
•   200,000 producers
•   Calf Crop 15.0 million
•   Slaughter 14.0 million
•   Approximately 400 slaughter plants
•   Beef Production 3.1 MMT
•   Domestic consumption 2.6 MMT
•   Exports 0.5 MMT (?????)
• The herd has a strong predominance of
  British breeds
• Sanitary status: Free of FMD with
  vaccination, free of BSE
• There are some problems with sanitary and
  feeding management at the ranch
• Feeding method: cow-calf on natural
  pastures, fed cattle on feedlots or pastures
  w/supplementation
• From 180 kg to 440 kg, takes approx. 12-14
  months (Avg daily gain of 500-600 grams)
CATTLE REGIONS
DISTRIBUTION OF CATTLE HERD
               Economic Returns
                 US$/Hectare
              Cow-Calf   Finishing   Flot Ranch   Soybeans
                                     US$/Head
Net Income    78         395         96           577
Direct Cost   -24        -297        -114         -231
Gross         54         98          -18          346
Margin
Overhead      -40        -70         -3           -100
Cost
Net Margin    14         28          -21          246
 Argentine Slaughter - 2006
       17%
                    29%

                          Steers
                          Lgt SteersBulls
                          Calves
17%
                          Cows
                          Heifers



      10%
              27%
Fed Cattle Marketing Channels
            7%
      10%



10%                    Producer-Buyer
                       Direct w/Broker
                 54%   Conc. Market
                       Local Auction
                       Other

  19%
             Meat Packers
• There are approx. 400 slaughter plants in
  the country
• 37% in GBA, 18% rest BA, 17% Santa Fe,
  10% Cordoba
• Largest buyer group 3.5%, second 3%
• Lately foreign investment (Brazil, U.S.)
• 80% of total beef is consumed domestically
       Domestic Consumption
• Per capita beef consumption at 63 kg
• Poultry 29 kg, pork 8 kg, lamb 1 kg, fish
  9 kg
• Average beef consumption is every other
  day
• Most popular cuts: short ribs, ground beef,
  knuckle, flank, rump
• Breaded beef, steaks, barbecue, stews
• Sundays the day that is mostly ate
• Most buy at butcher, then supermarket
• 50% of people buy beef 2-4 times a week
• 50% buy beef from steers, 50% from light
  steers, heifer and calves
• 90% buy fresh beef cut in the moment, 2%
  buy vacuum-packed beef
• Half freeze beef, the other does not
• 80-90% of the times women decide, buy,
  and cook the beef
             Cattle Prices
                March 2007
• Breeding cow w/calf or bred heifer US$300
• Two-year old breeding bull US$1,200
• Male Angus calf US$0.94 per kilo
• Female Angus calf US$0.80 per kilo
• Fed light steer US$0.85 per kilo, heavy
  steer US$0.94 per kilo
• Fed Heifer US$0.90 per kilo
          Argentine Beef Exports
             Product Weight
     600000
     500000
     400000
MT




     300000                                        Beef Exports
     200000
     100000
         0
              2001 2002 2003 2004 2005 2006 2007
                             Year
Argentine Beef Exports - 2006
     Total US$1.27 Billion

            9%
       2%
      3%                     E.U.
     5%                      Russia
                  37%        Chile
    6%
                             U.S.
    7%                       Israel
                             Brazil
                             Venezuela
                             Other
            31%
Beef Export Products - 2006

           3%
     16%


                         Bless Fzen
                         Bless Fsh
                         Processed
                58%
   23%                   Bin Fzen
                Argentine AVG Fobs
         7000
         6000
         5000
US$/MT




         4000                                             Bless frzn
                                                          Bless frsh
         3000
                                                          Processed
         2000
         1000
           0
                2001   2002   2003   2004   2005   2006
                                 Year
            Future ???????
• Short-Term: Not many changes from 2006
• Long-Term: Huge potential and
  opportunities. However, big threat is Gov
  policy

								
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