Export promotion trip to Argentina June 2008

Export promotion trip to Argentina June 2008

Market Select arranged in the period June 21-29 2008 a commercial promotion trip to Argentina’s pork producing industry.
We covered a distance of 2000 kilometers in a few days to meet with a few selected pork producers and investors for coming projects. We also visited and got an introduction to the outdoor pig establishments around Junin and Pergamino.

Thursday June 26th  and Friday June 27th we visited the exhibition  Avicola 2008 en conjunto con Porcinos, where new contacts were established to coming projects.

The trip was a succes, and it was confirmed that there are a significant amount of projects coming up in Argentina, and that Argentina’s pork industry has potential for future growth. The growth is brought about the facts that the annual consumption of meat in Argentina is 75 kg per inhabitant – equivalent to the consumption in Western Europe – but far above the average for Latinamerican countries.  Ofcourse, Argentina still eats primarily steak but the consumption of fresh pork meat is increasing by 50% at the moment. A better indication for the potential for growth is that the Argentine pork producer is earning bewteen 40-60 USD per slaughtered head compared to a loss for most pork producers in the rest of the world. This situation is explained by the fact that each farm is self-sufficient and has the feed stuff just outside the door so no import nor transportation costs are added to the feed cost.
Other information:

There are about 150 finishing plants in Argentina, of which 60% is gathered on 4 establisments.
From 2006 to 2007 the annual consumption of fresh pork meat increased from 2,5 kg/capita to 5 kg/capita
In same period the total demand for pork meat (frozen and fresh) increased from 3,5 to 8 kg/capita
The supermarkets in Argentina increased their sales of pork meat by 40-50% throughout 2007.
Argentinas exports of pork meat from January to october 2007 was 1716 tons  to a total value of 3,4 million USD. That is 6% more in volumen and 25% more in value compared to same period in 2006.
Argentina is free of any swine disease and it is therefor not allowed to import genetics nor animals from other countries but from Mercusur and Australia (whish is also free of swine diseases)
Argentina has a total of 180.000-200.000 sows
A lot of poor quality copies of inventory made in Brasil is found on the Argentine market.

Read more on the competitiveness in swine production of some South American countries here.