Argentine pork sector report for June 2024: Challenges and perspectives

Published 2024년 7월 1일

Tridge summary

The Argentine pork sector is facing challenges due to stable live pig prices and the effects of a slight peso devaluation, leading to a decrease in the dollar value of pork. Capon prices are the lowest in the region and possibly globally, causing an economic strain for local producers and a disconnection between official figures and market reality. Despite higher slaughter numbers and robust production, gross margins have decreased due to stable sales prices and increasing production costs, resulting in negative margins for the second month in a row. Beef consumption has decreased, leading to increased pork consumption, and imports have hit record lows. Exports have increased due to low local pork prices, providing some relief for producers. The sector has seen challenges, including the departure of producers and a decrease in production results, but there are also opportunities for growth, particularly in new export markets like Uruguay and China.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The price of live pigs continues to be the Achilles heel of production. It has remained stable in Argentine peso terms during June, however the small devaluation of the peso has led to a decrease in the value of pork in dollars. This phenomenon has made capon prices in Argentina the lowest not only in the region, but possibly in the world, a fact that has not been seen since the pandemic. This mismatch in the real value of the dollar creates a complicated economic environment for local producers, the report notes. The Bioeconomy Secretariat has published values that do not faithfully reflect the reality of the market, which generates an information gap and a disconnection between official figures and the situation experienced by producers. This discrepancy adds an additional layer of uncertainty and frustration in the sector, he adds. In terms of slaughter weight, the sector has seen higher numbers compared to last year and the average of the last decade (2012-2022). However, June ...

Source: Infopork