January 3, 2014
We are going to start with a question to consider as you read our blog for today. Compared to the United States, do you think Argentina consumes more or less beef per capita?? Keep reading to find the answer.
Today was the day that all our minds were blown at our first tour. We attended the Liners Sale barn. This is the largest cattle auction in the world. The facility was constructed in 1901 and it sets on 64 acres in the city of Buenos Aries. The number of cattle that are run through the facility can range from 5,000-10,000 head per day with an average of 8,000 head per day. The record for this facility was 30,000 for one sale day. This works much like a sale barn in the United States however the buyers are on the catwalk with the auctioneer and they are either buying for a supermarket or a packing plant. Sales are held Tuesdays, Wednesdays, and Fridays. Thursdays are reserved for special sales throughout the year.
In the facility there are roughly 20 different scale houses that are used to weigh the the cattle. These scale houses are used by the buyers and their system is different when you consider how they weigh the cattle. The cattle are weighed on the way in to give the buyers an estimate of what the cattle are. After the sale takes place the cattle are weighed again and that is the weigh that is paid on. Each buyer has their own scale house or one that they share with a few other buyers. On estimate each house can run through 1,000 head per day.
The weights of the cattle really shocked all of us. Many of us on this trip are from a cattle background and thought it would be similar, we were severely wrong. Cattle at the sale barn average 300-450 kilograms or approximately 650-800 pounds. Now, there were heavier cattle there but very few. The reason that the weights are low is that the Argentine people believe that the lower the weight the more tender the meat will be, which we all know to be false. This said, the lighter weight cattle are worth more money per kilo. Average price per kilogram for a 300 kilogram animal is 14 pesos per kilogram, for a grand total of approximately $700/head. To compare to U.S. the cattle are mainly British influence and the Black Angus have had a large influence on their cattle industry as well as the Red Angus.
Here's the answer you have been waiting for. Argentina is a country that consumes much more beef per capita than the U.S. On average they consume 64 kilograms or 141 pounds of beef per capita per year. That is almost double that of the U.S. In Argentina they eat the most beef, then chicken, then pork. The reason for this high consumption rate is that they export very little beef and instead feed there people with it. To contrast to the U.S. beef is considered a luxury product due to the price because of export and demand. The price of beef in Argentina depends on the cut but for example loins would be approximately $10 per pound and ribs would be about 50 pesos.
Another triva question for the day. What is the average daily gain, and what is the cost of gain for feedlot cattle in Argentina?
After the Liniers market we visited a farm that is mainly crops and feedlot cattle. The cattle come from other producers and they put them in the feedlot. This farm is called Grupo Bermejo and they have approximately 22,000 acres of land in the La Pampa province. 17,000 acres of this is put to crop use to feed the feedlot cattle and soybeans for export. In terms of their crop care and fertilizer program, they are very similar to the United States in that they are always testing the soil to balance their fertilizer program. On the farm they also have an Agronomist that is continually checking the weed pressure and cares for the records for the crop side. When visiting with them we also learned that we all are terrible at converting standard to metric. They are very comparable in their soybean production as far as yield is concerned however we beat them in corn yield.
Here's a thought that occurred to me as we were looking at soybeans. After visiting China and hearing their exports and import situations. Its interesting to know that even though we are close in yield, Argentina will export more soybeans to China due to higher oil content for the making of tofu. It is all coming together in terms of global markets and it is easier to understand how exports work and how it affects prices. The interesting thing is that the Argentine government watches the Chicago Board of Trade for their prices and basis everything off that.
The feedlot was the most impressive for most of us as it was huge. I mean huge in the sense that they have capacity for 10,000 head and they currently are operating at 95% capacity. In a year they can finish out 30,000 head of cattle. As we learned earlier their cattle here also small and their finish weights are as mentioned at Liniers. This operation feeds three times a day and at every feeding the bunks are scored to adjust the feeding if needed. Their ration consists of wheat silage, wheat silage due to the poor corn silage and the wheat has higher protein but less energy than corn silage, in addition to the wheat silage they use a pre mix with Rumensin, as well as a urea pellet for extra nitrogen.
Now, for some facts and maybe the answer to the second question of the day. To understand the feedlot industry here we must first understand that here in Argentina there is no grading system for yield grade or quality grade. There is a numbering system of sorts and it is 1, 2, and 3. They shoot for number 2's and that is approximately 4-5 mm of fat at the 12th and 13th rib. There is also no way to score intramuscular fat as we do in the US with Quality grades. In addition their dressing percent is not what we would expect and is much lower than the United States, they expect 59-60%. Average daily gain in a feedlot such as this on is roughly 1.3 kilograms/day and their cost of gain is approximately 7-8 pesos/kilogram which is roughly a dollar American currency. The cattle are in the lots for a 90 day feeding period.
Visiting with them we found out other facts and situations that explain their agriculture industry. The feed mill at the feedlot cost $4.6 million American, and in Argentina there is no possible financing. And we all know that they had to put money with that 4.6 to get up to production. It was also fun to talk to them about land prices. 8,000 pesos per hectare is very common.
Hope you all enjoy traveling with us as we venture through Argentina. And I will leave you on a brighter note its approximately 100 degrees here.
Adios!
Laura Schoneman
No comments:
Post a Comment