South American Real Estate News

Argentine Beef providing healthy food for the World

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Argentina is a huge world-class producer, consumer and exporter of bovine meats.

Each year, Argentina produces 2.5 million tonnes plus of meat. The calculated beef consumption in Argentina is 65.4 kg per person, which is higher than in other countries. For example, the United States is 42 kgs, and the EEC is only 18 kgs. Even at 65.4 kgs, this is a sharp decline from the 1950s when it was over 91.9 kgs per person.

The main strength of the Argentine beef industry has always been the quality of the meat. Beef in Argentina is produced mainly on pastures with, in some cases, additional supplementation during poor grass-growing conditions. The beef here is truly a natural product with no contamination, very high quality, and a high protein content with high biological values. Vitamins, Omega-3 fatty acids, an appropriate balance between omega-3 and omega-6 fatty acids, and high levels of conjugated linoleic acid all make for healthy living. These standard characteristics are enhanced under organic growing conditions, in which cultural, biological and mechanic models are utilized instead of synthetic material.

Demand from developed countries is expected to increase towards food grown in organic conditions during the next few years. This scenario means there is an opportunity for Argentina to export more meat to the demanding international market. It is forecasted that meat exports may soon reach USD 2,000 million.

 The more common systems in Argentina are based on the direct use of pastures through grazing. These pastures come from cultivated land, natural pastures and seasonal crops.  However, there is a trend towards the agricultural station of land, which makes it very important for the beef industry in Argentina to remain competitive and sustainable. The agricultural growth of Soya within the Pampas is pushing beef cattle to the less fertile areas. The north of the country is the future of the beef industry in Argentina, and the potential for increased beef production in that area is almost unlimited.   

Fattening with strategic supplementation of maize or grain presents higher stability in terms of financial results. This means that, even though the supplementation requires an increased cost of production, it allows the farmer to maintain the certainty of production in the long term. The better price for grain has stimulated many farmers to re-invest in beef.   It could well be that the beef industry will have a big moment…As someone famous said not long ago when asked about the country’s future, “Argentina is condemned to success” we can add that beef is not an exception.

Gonzalo Tuñón Vet. MSc. M.U. – Consultant

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About Geoffrey W W McRae

Geoffery is a New Zealander focused on South America with a strong commercial, farming and real estate background spanning over 30 years in five different countries. He is the founder of Gateway to South America which is a real estate consulting group specialising in Argentina, Brazil, Chile. Paraguay, Peru and Uruguay. His reputation for discretion, experience and expertise has involved him in representing some of South America's highest-profile clients.

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