This year 700-800 thousand cattle will be finished with some degree of supplementation

Whether in feedlots or with some degree of feed supplementation, this year will see significant growth in the number of grainfed cattle in Uruguay.

According to estimates by Álvaro Ferrés, president of the Uruguayan Association of Intensive Meat Production (Aupcin), around 700-800 thousand steers and heifers will be finished with some degree of supplementation. This represents a jump from last year, when between 500 and 600 thousand head were finished.

These additional 200 thousand head finished with some degree of supplementation, with carcass weights of 280-290 kilos for feedlot cattle, represent an additional supply of some 56-58 thousand tons of beef. Without grain finishing, these animals probably would not have reached slaughter weight this year or, if they had, their carcasses would have been lighter.

The strong demand for feeder cattle from feedlots and the high prices received from slaughterhouses (with feedlot sales being closed at US$ 5.50 per kilo carcass weight, according to feedloter sources) has led to feeder cattle prices of up to US$ 3 per kilo for animals over 400 kilos that qualify for the 481 quota (under 27 months of age at slaughter).

These are unprecedented prices. Feeder cattle, with higher demand the heavier they are, are being purchased by feedlots at US$ 1,200-1,350, depending on weight. Animals that are not quota-eligible, if heavy, are selling for about 10 cents less per kilo, also a historically high level.

What allows for these high feeder prices is the favorable beef-to-corn ratio. It is not that corn is cheap (it is around US$ 200 per ton ex-field), but rather that beef is very expensive.