Bovine meat slaughter increases 12% year-on-year in the first 5 months of 2023 according to the Consortium of Argentine Meat Exporters

The beef slaughter rose 12% year-on-year in the accumulated of the first 5 months of 2023, with a total of 6 million cattle slaughtered compared to the 5.36 million that had been registered in the same period of 2022, according to the Consorcio de Exportadores de Carnes Argentinas (ABC).

The bovine meat production obtained in May 2023 was close to 288.2 thousand tons bone-in beef equivalent, which implies a rise of 9.3% compared to April, and 7.3% year-on-year. In the first 5 months of 2023, approximately 1.36 million tons of carcass equivalent were produced, representing a 10.2% increase compared to the same period of 2022.

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The rebound in work occurs in a context where the inflation of beef is much lower than the general rise in prices, and per capita consumption experiences a rebound this year.

In fact, the National Institute of Statistics and Censuses (INDEC) reported that inflation was 7.8% in May, and the interannual variation climbed to 114.2%. Meanwhile, the segment of bovine cuts had a variation of only 1.5%.

The data of the Institute for the Promotion of Argentine Beef (IPCVA), which encompasses 28 cuts, is also in the same vein: it noted that the value rose 1.9% in May and, annualized, 70%.

In this context, the slaughter of bovine meat in May was located at approximately 1.2 million heads processed. This implies a monthly rise, compared to April, of 8.7%, which is equivalent to around 103,000 animals, and an increase of 10.4% compared to May 2022, representing a growth of just over 120,000 copies.

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This greater work generated that in the first 5 months of 2023, there were close to 1.36 million tons of carcass equivalent, which is 10.2% more than the 1.23 million tons obtained between January and May 2022.

In this scenario, there are a couple of particularities to follow closely. One is the slight increase in the percentage of females at slaughter, and the other is a small drop in average weight.

“The average weight of the carcasses during the 5 months that have elapsed this year was 226.3 kilograms, 1.6% below the 230 kilograms of the same period of the previous year,” the report detailed.

According to the participation of females in the task, the ABC Consortium indicated that in May 2023, it stood at 48.3% of the total slaughter, moderately above the 47.3% participation that had been registered in the same period of 2022.

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“In the first 5 months of the current year, the slaughter of females reaches a participation of 47.3% of the total, being slightly to moderately above the record of 46% corresponding to the period January to May 2022. In the first 5 months of the year, almost 370 thousand more females were sent to slaughter than in the same period of the previous year,” he detailed.

The breakdown by category shows that the production of steer and steer meat grew by 9.1% year-on-year between January and May, going from 688.2 thousand tons to 751.1 thousand.

The bull meat production increased by 1.6%, from 28.4 thousand to 28.8 thousand tons. While the availability of beef grew by 17.1%, climbing from 235.2 thousand to 275.4 thousand tons of beef. Finally, the heifer meat production
The production of beef in Argentina has seen significant growth in May 2023. Bovine meat production reached close to 288.2 thousand tons, a 9.3% increase from April and a 7.3% increase from the previous year. The beef slaughter also rose by 12% in the first 5 months of 2023 compared to the same period in 2022. This increase in production and slaughter is occurring alongside lower inflation rates for beef compared to other goods and an increase in per capita consumption. The data suggests a positive trend for the Argentine beef industry.

What factors have contributed to the significant increase in beef production and slaughter in Argentina in May 2023, and how sustainable is this positive trend for the industry?

There are several factors that have contributed to the significant increase in beef production and slaughter in Argentina in May 2023.

1. Favorable weather conditions: Good weather conditions, including ample rainfall and suitable grazing pastures, have led to increased forage availability and improved cattle health. This has resulted in higher weight gains and overall productivity of the cattle.

2. Government policies: The Argentine government has implemented various policies to support and incentivize beef production. These include tax incentives, subsidies for cattle farmers, and increased investment in infrastructure for the sector. These policies have encouraged farmers to increase their production and invest in modern farming practices.

3. Increased international demand: There has been a surge in global demand for beef, particularly from countries like China. Argentina, known for its high-quality beef, has been able to tap into this market and increase its exports. This has motivated farmers to ramp up production to meet the growing demand.

4. Technological advancements: The adoption of modern technologies in the beef industry has improved efficiency and productivity. This includes the use of advanced breeding techniques, precision agriculture, and improved animal health management. These advancements have helped farmers optimize their operations and achieve higher yields.

However, it is important to assess the sustainability of this positive trend for the industry. Here are some considerations:

1. Environmental impact: Expanding beef production can lead to deforestation and increased greenhouse gas emissions, as more land is cleared for grazing and feed production. It is crucial for the industry to implement sustainable practices that minimize environmental degradation and prioritize conservation.

2. Animal welfare: As beef production increases, there is a potential risk of compromising animal welfare standards. Farmers need to prioritize humane treatment and provide proper care for the animals to ensure the sustainability and ethicality of the industry.

3. Market volatility: While the increased demand for beef is currently driving the positive trend, the market conditions can change in the future. Shifts in consumer preferences, economic factors, or international trade policies can impact the industry’s sustainability. Diversification of markets and product offerings can help mitigate risk.

4. Supply chain resilience: The beef industry relies on a complex supply chain involving various stakeholders. Ensuring resilience and adaptability in the face of challenges like disease outbreaks, trade disruptions, or climate change is crucial for the long-term sustainability of the industry.

In conclusion, multiple factors have contributed to the significant increase in beef production and slaughter in Argentina in May 2023. While this positive trend presents economic benefits, it is important to consider the sustainability of the industry by addressing environmental impact, animal welfare, market volatility, and supply chain resilience.