JBS could sell three Argentine meat plants - source

BUENOS AIRES Aug 28 (Reuters) - Brazilian meatpacking group JBS (JBSS3.SA) could sell three of its plants in Argentina, where the industry is being hurt by falling cattle stocks, an industry source said on Saturday.

Argentina's Domestic Commerce Secretary Guillermo Moreno made the announcement during a recent meeting of industry executives, the source said, speaking on condition of anonymity.

A spokesman for JBS, the world's biggest beef producer, declined to comment.

The plants that could be sold, located in Pontevedra, Berazategui and San Jose, are currently operating at a reduced capacity due to a decline in the number of cattle being sent to market.

Falling beef output in the country, a leading global supplier, has boosted domestic steak prices, leading the government to curb exports in an effort to reduce the cost of the nation's favorite food.

It has also paid subsidies to meat-packing industry workers to compensate them for lost working hours.

Ranchers say the reduction in the size of the national herd has been caused by government policies that have driven many farmers to sell their animals and rent fields out for crops such as soybeans. (Reporting by Nicolas Misculin; Writing by Helen Popper; Editing by Eric Beech) (helen.popper@thomsonreuters.com; +54 11 4318 0655; Reuters Messaging: helen.popper.reuters.com@reuters.net))