Feedlots improved gross margins by 18% compared to 2024

According to the Argentine Feedlot Chamber (CAF), which brings together 114 professional operations with a combined capacity of 870,000 head, the sector had a good first half of the year, as it did last year, favored by the drop in feed costs, although somewhat offset by rising calf prices.

The most recent snapshot from CAF’s July report shows occupancy at 70%, one and a half points lower than a year ago, although the replenishment rate (intakes over outflows) stands at 1.20, a 7% year-on-year increase.

The calf/steer exchange ratio was 1.25 in June, showing a 2% deterioration for feedlots compared to a year earlier. On the other hand, the steer/corn ratio was 13.9, 18% better than in June 2024.

Gross margin before interest and taxes was US$ 37 per head, equivalent to almost 14 kg of young steer per head, placing it 18% above June 2024.