In the world of rural business and agrifood, Uruguay has managed to stand out as a benchmark in the livestock market.
The South American country has experienced significant growth in this sector. The sale of farmland and agrifood being an integral part of its economy. In this context, Diego Arrospide, president of the Livestock Consignors Association (ACG), has shared his perspectives on the current livestock market and how various factors are driving its dynamism.
Arrospide comments that, beyond the week and the market itself, the slaughter already exceeds last year’s by 19%. It is important to note that this increase is an early indication due to the year just beginning, but it is encouraging data for the Uruguayan livestock industry.
Slaughter in the country has shown steady growth, demonstrating the potential and strength of this market.
One of the factors that has had a significant impact on the Uruguayan livestock market is the climate. Since the second half of January, there has been a drastic change in weather conditions, which has directly affected the market. However, Arrospide points out that there are specific areas still facing a complicated situation, highlighting the importance of adapting to the specific conditions and challenges of each region.
In addition to the climate, another key element driving the Uruguayan livestock market is the international situation and demand. Arrospide emphasizes that demand is the main support they currently have. Uruguay has positioned itself as a reliable supplier of livestock products in the global market, and international demand continues to be an important driver for the sector’s growth and development.
The president of the ACG emphasizes that it is the combination of various factors that makes the livestock market highly dynamic and thriving. Although there have been specific transactions at a value of US$5 per kilogram of meat, these are due to exceptional livestock. The scarcity of these high-quality livestock remains a challenge for the industry. However, what is truly important is the consistency of the livestock market and the livestock sector as a whole. Beyond a specific price, the consolidation of good values and active participation throughout the production chain is essential.
Diego Arrospide highlights that the Uruguayan livestock market is characterized by the consistency of its values and active participation throughout the production chain. Beyond specific prices, it is crucial to consolidate good values and maintain active participation. This ensures the sector’s strength and its ability to face market challenges.
In terms of prices, the Livestock Consignors Association establishes a reference value of US$4.73 per kilogram of meat for fat cattle, US$4.37 for fat cows, and US$4.51 for fat heifers. These prices reflect the current market reality and serve as a guide for producers and buyers involved in the Uruguayan livestock sector.
Regarding slaughter, 53,951 bovine heads were registered last week. This number reflects the level of activity and sustained pace in the livestock sector. It is worth mentioning that a significant portion of this slaughter comes from feedlot cattle. This demonstrates the relevance of this breeding modality in the current market.
Arrospide suggests that, once the quota window is closed, a decrease in activity may be observed as the current reality may not be sustainable in the long term. However, it is projected that the livestock market will remain firm in the coming weeks. This trend is based on market stability and the good values that have been maintained so far. The consolidation of this consistent activity and the added value it generates throughout the production chain are key aspects to ensure continuous growth.
In summary, the livestock market in Uruguay is experiencing a period of growth and dynamism driven by various factors. The president of the Livestock Consignors Association highlights the increase in slaughter compared to last year, although it is important to consider that it is an early indication due to the beginning of the year. Climate and international demand are elements that have directly influenced the livestock market, but there are also specific challenges in some areas of the country.
Despite these challenges, the market remains strong and consistent. There are good values in meat prices and active livestock activity. The combination of these factors drives the production chain and promotes the growth of the livestock sector in Uruguay. With the consolidation of these values and continued attention to market challenges and opportunities, it is expected that the Uruguayan livestock market will continue to grow in the coming months. Also will strengthen its position as a benchmark in rural business, agrifood, and farmland sales in Uruguay.
The livestock market in Uruguay continues to grow and strengthen thanks to various factors. The rural business and farmland sales industry in the country are constantly evolving. The sector will probably continue growing and consolidating its position.
Read the interview to Diego Arrospide, Director of Escritorio Arrospide Agribusiness.
https://rurales.elpais.com.uy/ganaderia/mercado-ganadero-firmeza-y-buenos-valores
Source: Rurales El Pais. 2/15/2022
