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Doing Business In Argentina

Doing Business In Argentina

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Agricultural Sectors Return to top<br />

Animal Genetics (Bovine Semen)<br />

Overview Return to top<br />

3/4/2008<br />

2005 2006 2007 (estimated)<br />

Total Market Size 15.5 18.0 21.8<br />

Total Local Production 8.6 9.5 11.0<br />

Total Exports 0.6 1.0 1.2<br />

Total Imports * 7.6 9.5 12.0<br />

Imports from the U.S.<br />

2.5 3.1 4.3<br />

**<br />

Millions of USD. Exchange Rate 1USD=3 Argentine Pesos.<br />

Sources: Official Argentine Customs statistics and industry contacts<br />

* Market price; ** FOB value<br />

<strong>Argentina</strong> has over 50 million head of cattle. Approximately 2.2 million cows are dairy<br />

and roughly 20.8 million are of beef breeds. While local beef cattle are of very good<br />

quality, dairy cows need to continue to improve to meet high quality standards. Of the<br />

imported semen, more than 95 percent is from dairy breeds (96 percent Holsteins; 3<br />

percent Jerseys; 1 percent Brown Swiss). Beef genetic imports are primarily Black and<br />

Red Angus. The U.S. accounts for approximately 70 percent of the total imported<br />

market, followed by Canada.<br />

Best Products/Services Return to top<br />

Holstein semen accounts for the largest share by far, but beef breeds semen have also<br />

good potential growth.<br />

Opportunities Return to top<br />

The local dairy industry needs to continue using high quality genetics in order to produce<br />

efficiently, especially with the new trend of moving towards free stall production systems.<br />

Therefore, the use of imported Holstein semen will continue to be strong. Local semen<br />

distributors, representing foreign companies, foresee good opportunities in the beef<br />

sector as well, as there is much to improve in the use of semen with production data<br />

(EPDs). This market is big, but efforts in educating breeders will be key. Black and Red<br />

Angus, Braford and Hereford semen have the greatest market potential.<br />

Resources Return to top<br />

National Association of Animal Breeders: www.naab-css.org<br />

Secretariat of Agriculture, Livestock, Fishing and Foods: www.sagpya.mecon.gov.ar

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