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International Beef Commerce: Performance, Future Trends and Opportunities for Argentina

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Document pages: 18 pages

Abstract: Beef production worldwide grew, according to the FAO, by 30 million tons during 1965-2005. Its annual growth rate has been 2.2 , higher than the average growth rate of the world population (1.7 ). The main increases in beef consumption in the past few years have taken place in Asian countries (China, India, Japan, Korea and the Philippines) and in Brazil and Mexico. This can be explained by a consumer diet change brought about by an increase of the population’s purchasing power and migration to cities. Argentine beef has a good international position. However, Argentina’s beef exports have been very erratic. The Argentine beef sector appears as a sector of low international competitiveness in systemic terms, although its production costs per animal are lower than those of other producing countries. Beef consumption worldwide is expected to continue rising. In that sense, Latin American countries would have a chance to provide to developing countries. Therefore, an opportunity arises for Argentina to become an important player in world beef exports, especially due to the potential of beef production it has, based on all its production possibilities (extensive, pasture-based; and intensive, or feedlot). In this paper we aim to study the future situation of the international beef market and analyze Argentina’s possibilities to reposition itself as an important exporter, both in quantity and quality, in the medium term. Primary and secondary data is used, analyzing the main drivers and trends on international beef.

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