As for 4 years, these days, between June 14 and 20, the Argentine Association of Swine Producers (AAPP), celebrates Pork Meat Week, a date that has to do with the founding of the entity, makes 99 years old, on June 14, 1922.
While in the last 15 years the activity has grown at 8.5% per year, with a consumption of fresh meat that comprises 70% of the total of 15.6 kg / inhabitant / year of pork that the domestic market demands, Adolfo Franke, president of the AAPP, pointed out that “the sector is growing. In the first four months, production rose 11% and exports and imports 60%.
A rise in pork consumption of 1 kg / inhabitant / year is expected in the next 10 years, with which in 2030 the Argentine would eat, on average, 26 kg / year.
On this subject, he specified that “sand it imports bondiola from Brazil that there is not the great demand that is registered in Argentina. This volume only reaches 5% of the total production, but being a cut in value, it hurts because the gondola arrives ”.
In these months, from April to August, the demand for pork meat decreases, since the industry, due to the lower seasonal consumption of cold cuts, reduces its production. But this year, given the pandemic conditions, this decline is even more noticeable. “The normal low seasonality combines with the high cost of grains and that lowers current profitability, but nonetheless, we see a promising future,” Franke said.
In this regard, he added that “less than 1 month ago we did a survey from which it appears that there are 70 producers willing to add 50,000 productive mothers to the 280,000 in intensive systems that the country has in production”, Out of a total of 380,000 in the country, which includes some 100,000 backyards, belonging to small or medium-sized family productions. “Those 50,000 mothers are 150,000 more tons of annual pork produced,” he said.
The Argentine Federation of Pig Producers, an entity in formation that groups together the AAPP, the provincial chambers and other technological and commercial entities linked to pig production, commissioned the Agricultural Foundation for the Development of Argentina (FADA) to prepare the Pig Strategic Plan 2020/2030.
There, a rise in pork consumption of 1 kg / inhabitant / year is expected in the next 10 years, with which in 2030 the Argentine would eat, on average, 26 kg / year. To achieve this increase, the current number of mothers would double to reach around 600,000 in 2030, while the 90,000 jobs offered by the chain today would double to 183,000, with investments of 2,700 million dollars.
Adolfo Franke, president of the Argentine Association of Swine Producers.
“This implies adding 35,000 mothers per year. The kilos of work can be increased. Production has increased in efficiency, producing more than 4,000 kg per mother / year. The sector has a lot to develop. We want to double the number of mothers. And to increase exports that today are fragile because 63% go to China, despite the fact that there are other minors and the activity works with Senasa to open new ones.
For Franke, this entire plan is conditioned by the tax pressure that complicates the entire economy, but with a particularity in the sector: “as of February 2018 the sales VAT rate was reduced from 21% to 10.5%, measured that generated the biggest structural problem that the sector has today, which limits its growth. When we sell a VAT of 10.5% is charged and our costs pay a VAT of 21%, which causes us to have a VAT imbalance, which cannot be recovered. This is a limitation on investment, which could have a solution principle if the law to promote agro-industrial exports is approved, which the Argentine Agro-industrial Council tries to promote in Congress, “he said.
arry Bartoloni, president of the Lean Swine Consortium (PorMag).
For its part, Larry bartoloni, president of the Lean Pigs Consortium (PorMag), pointed out that “dWithin the current context, the activity is very tight. Consumption has been maintained, but it is not growing. It is because of the pandemic and because the purchasing power of our people is totally devalued. We are working, we sell and charge but there is no profitability. We are leveling the numbers: grains today are worth 50% more than a year ago. We buy inputs in dollars and we sell a product in pesos, and we cannot pass those increases on to the consumer.
PorMag is a civil association, made up of a group of producers mainly from Córdoba, although it also includes from other provinces that works in an associative scheme by which they jointly sell their production to more than 40 clients and make joint purchases of supplies for all their associates. Its capon sales values are currently a reference price in the national pig market.
PorMag’s group of partner producers has about 60,000 dams on a scale ranging from 300 to 5,000 dams with an average of 600, marketing about 20,000 pigs per week, which constitutes 20% of the Argentine slaughter.
Only 6% of the production is exported.
For Bartoloni, in the current context, “it is difficult to accommodate costs and that is why the investments we should be are not being made, because in addition no credit for investments in capital goods”.
On the other hand, he agrees with Franke that “the general tax pressure, the lack of clear policies and a strategic plan prevent us from developing better, not only for the domestic market, but also with the surpluses for export, however, in 2020 , for the first time in history, we had a trade surplus ”he emphasizes.
In this regard, it points out that “in export, the refrigeration sector is not strengthened and there is a lack of industries that have an export profile. Slaughter, stripping and cold plants in competitive volumes for the world market are lacking. We need the existing ones to expand and generate new plants that have export capacity and efficiency to meet health requirements ”.
Carlos Seggiaro, economist.
In this regard, Franke points out that “we are exporting 6% of the production, we need to have more export plants”. And he added that “financing is also needed because the activity is capital intensive. There are credits, but we should increase a specific line for the sector and associate other financing for the treatment of effluents, so that growth is sustainable. We are part of the solution in the internal supply ”.
On the other hand, regarding the evolution of pig production, the economist Carlos SeggiaroHe said that “we have to think about the business in terms of the value chain. Those who are most clear about the association are the largest producers, who realize that associative practices generate greater profitability. But, paradoxically, the youngest, who run more risks, visualize that need much less, for a cultural reason, as they are inserted in a largely individualistic society. The key to the pig sector is to think in terms of the value chain looking for associative forms ”.