Argentine Beef Trends Effects on The US Cattle Market

Yesterday, RoboResearch Senior Animal Protein Analyst, Lance Zimmerman gave an update on the US cattle herd and projected trends, he anticipates a strong market and both near and long term for the US. Today, he discusses a report he recently released called the changing face of the Argentine Beef Industry. According to Zimmerman, Argentina is one of the largest beef-producing and consuming markets in the world.

“As you look at their market, what's unique is similar to the US their consumption patterns have declined over the last 30-40 years.”

Zimmerman says an increase in export demand is lending to this trend is

really very similar to the US they've seen an increase in export demand.

“And as you look at the key players in the Argentine market in terms of global exports, it's China.”

How does this affect the US?

"China almost outpaces exports to other countries by 10 fold just a little bit short of that. And so when we talk about the Argentine market, and we think about us cattle producers, farmers, and ranchers, I think the big thing to recognize is that if supplies contract in Argentina, it creates a more hungry export partner for us in terms of China. If they can't get as much beef from China, Argentina or Brazil, or Australia. They're gonna come knocking on the US markets door.”

“Which he says makes for tighter global supplies of cattle for the next several years.