Oct. 30 (Bloomberg) -- Argentina, the biggest per capita beef consumer, may face a shortage of the national staple as early as next month if the government continues to withhold subsidies to feedlots, a farm group official said.

Feedlots “are short of cash,” Eduardo Ambrosetti, chief economist of the Argentine Rural Society, said yesterday in a telephone interview from Buenos Aires. “Feedlot operators are replacing less than 40 percent of the cattle.”

Argentina’s more than 500 feedlots rely on the 200 pesos ($52) per head that the government has failed to pay since Sept. 1 as a steady source of income. The reduced income for cattle growers follows government policies that have made it unprofitable to export beef for many producers.

“Feedlots are responsible for around 5 to 6 million of overall cattle heads consumed in Argentina this year, which is roughly 50 percent of the total,” Juan Eiras, president of the Argentina Feedlots Chamber, said today in a telephone interview from Buenos Aires. “The government owes us between 1 billion and 1.1 billion pesos.”

Hugo Biolcati, president of the rural society, said Aug. 27 that a cattle shortage would prompt Argentineans to cut down domestic consumption by almost a third in the next two years.

Argentineans eat, on average, about 70 kilograms (154 pounds) of beef each year. The South American country’s herd has declined over the past year as the worst drought in a century harmed pastures.

To contact the reporter on this story: Rodrigo Orihuela in Buenos Aires at rorihuela@bloomberg.net.

Last Updated: October 30, 2009 15:45 EDT