The Argentine meat market is going through a difficult time with a sharp drop in the stock and domestic prices to soar. Ignacio Iriarte, private consultant from the neighboring shore, says "There is a very strong circumstantial restriction of the supply of beef in Argentina as demand suffers a panic attack. The Feed Lot, which had managed to keep 2 million heads, has been emptied but lasted until September when scandals pay cut subsidies and payments sector started. The second aspect is that it rained in an extraordinary way in 80% of the countryside. And the third reason is that it is already starting to feel a phenomenal drop in the stock and now there are just over 50 million heads while three years ago there were 61 million."
The system will not solve Feed Lot in the short term and there is stillness because prices are too high while the heavy bull is on the order of $ 3.50 per kilo on the hook as exporter dollar. Also exports are limited to the Hilton and the innards so plants are working 30 to 40% below their installed capacity. And the meat hook has increased by 80% since November.
"The big effect on Uruguayan exports are being seen at the Hilton and the Russian Federation. When Argentina is out, the Uruguayan market is priced better and with a large number of markets to choose to sell. That advantage is going to start being seen in the coming weeks. Argentina in the coming years will export less and throughout the period in which the Kirchner lead the country they are going to have their exports restricted" he said.

(www.observa.com.uy, 12 February 2010)