Bright outlook for Uruguay in 2004

Prospects for the Uruguayan cattle and beef industry are expected to continue improving into 2004, according to the Foreign Agricultural Service of the United States Department of Agriculture. The cattle herd in Uruguay is forecast to continue rebuilding in 2004 with the calf crop expected to be larger than the rate of slaughter (plus losses) due to improved herd management practices (including early weaning) and pasture conditions. Moves to expand grain-fed beef production are also on the horizon, amid lower grain prices. Increased production and declining domestic consumption, due to the reduced purchasing power brought about by the current recession, is expected to free up supplies for export markets. The devaluation of the Uruguayan Peso in June 2002 and the absence of FMD in the country since August 2001 have assisted Uruguay in its endeavours to build a strong beef export sector. Beef exports during 2004 are projected to increase by 5% to 330,000 tonnes due to strengthening demand in export markets, particularly the US. Source: Meat and Livestock Australia