Field of three as Uruguay joins the South American beef club

Published on Wednesday 2 July 2008 22:27

WHEN European farmers talk of beef from South America their thoughts almost invariably centre on Brazil and Argentina: those countries, after all, rank respectively as the third and fifth largest producers in world terms.

However, the fast emerging new player is Uruguay, a relatively small country with a population of just 3.2 million, but beef is big business around the River Plate and the capital city of Montevideo.

Exports this year are forecast to increase by 7 per cent to at least 410,000 tonnes. Shipments to the EU, following the near-total ban on imports from Brazil amid concerns over foot-and-mouth and traceability, are set to more than double from 7,000 tonnes to at least 18,000 tonnes during 2008.

The UK will be the major destination with a projected inward flow of 6,600 tonnes, which would be well above the 2,100 tonnes of 2007.

At last year's Anuga trade fair in Cologne, delegates from Uruguay were keen to stress the integrity of their farm assurance scheme, much of which has been modelled on the Scottish regime.

However, Russia is set to be the biggest market for Uruguay, with exports set to jump from the modest 1.4 million tonnes of last year to at least 22,000 tonnes in 2008 following a fall of over 40 per cent in shipments from Brazil.

Farmers and ranchers in Uruguay are enjoying a period of unimagined prosperity with producers currently receiving 37 per cent more in US dollar terms for their cattle destined for export.

Meanwhile, prices of land in Uruguay, and throughout much of South America, are firmly on the rise, with investors from both Europe and North America showing considerable interest.