While in past decades Argentina had been firmly place among the top five beef exporting nations in the world, it has slipped considerably in recent years, with the most recent USDA figures placing it eleventh in 2012.
The decline in exports volumes has largely mirrored the drop in cattle numbers, beef production and rising production costs. In 2006, the Argentinean herd stood at 60 million head, compared to an estimated 49 million head in 2012.
Also contributing to the decline in exports was the decision by the Argentinean Government several years ago to ensure an adequate beef supply domestically.
In order to achieve this, the government implemented export quotas, which increased beef prices for the international market and reduced the competitiveness of Argentinean beef.
Such controls also impacted the slaughter market, with the number of abattoirs decreasing 65% in the last five years, according to SENASA.
Interestingly, Argentina is the largest EU beef quota holder with 29,375 tonnes swt, which represents 44% of the total allocated EU quota to eligible nations. Last year (2011-2012), Argentina only shipped 64% of its allocation, exporting a total of 18,800 tonnes swt.
The latest United States Department of Agriculture report on Argentina forecasts the cattle herd to increase 3% in 2013, to 51.1 million head, with exports to rise 6%, to 180,000 tonnes cwt.
