Situation/weather: Autumn is coming, and rainfall conditions are gradually normalizing but still remain below the seasonal norms. The Province of Corrientes has recorded its worst drought in 40 years. For livestock activities, it takes about 18 months to compensate such situation (production cycle, pastures, soils, water reserves). It’s the 2nd successive year of drought that we faced.
Cattle operation: We have currently above 6,100 heads at the farm. We have entered in the peak season of cattle sales. We have planned to sale around 900 heads in the coming months (mostly female and male calves). You can see below 360 beautiful male calves being prepared for delivery.
Even if the exports quotas remain in place, prices have nicely increased over the latest months (+15%) and reached their 20-years historical highest. However, that doesn’t mean that profitability boomed. On average, costs of production have increased by 50% (inflation of salaries, +39% for gasoil, booming supplementation costs driven by high grains and oilseeds prices).
For the global overview, International beef prices will remain very firm, not only because of demand (China) but also because of the additional pressure exerted by price increases in grains and oilseeds, and energy, which will further impact the price of other types of meat, such as poultry and pork, whose production is more vulnerable to cost increases.
2-years steers prices (USD/Kg)
Argentina can position itself within a very limited group of countries that can continue to provide meat, based on pasture. A great opportunity for Argentina!