Argentina Pig producers satisfied with current cap on prices: "They allow profitability in the sector," he says

Published 2020년 12월 16일

Tridge summary

The Argentine swine industry has seen a resurgence in growth, particularly in the face of the COVID-19 pandemic, with a significant recovery in capon prices due to increased demand from China for various agricultural products, including meat. This demand has been pivotal in powering Argentine pork exports to their highest levels ever, surpassing 4,600 tons in July. The industry has shown resilience, achieving profitability with the current pricing of pork meat products and boasting an average gross margin of 15%. Furthermore, domestic pork consumption is anticipated to see a rise in the summer, fueled by increased restaurant and grill activities, as shown by a 3.1% increase in pork slaughtering from January to October this year. This period also witnessed a notable 6.6% rise in pork production, attributing the growth to larger capon sizes, and exports are on track to exceed 40,000 tons this year, marking a significant improvement from 2019's figures.

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

Original content

The Argentine swine value chain - unlike what happens in Brazil - is concentrated in the domestic market. During the first months of the mandatory confinement (last April and May) capon prices collapsed in line with a considerable drop in the consumption of pork and sausages. When it seemed that night was coming, from the middle of the year Chinese importers - either through private companies or those controlled by the central government - began to buy grains, vegetable flours, oils, meats and foods made for rebuild internal reserves. In this framework, Argentine exports of pork meat products in June exceeded 4,400 tons per month by product weight for the first time in history, to later reach more than 4,600 tons in July, although they later dropped a bit. The boost from Chinese demand, together with a recomposition of domestic consumption, allowed the price of capon to recover since then. The price of the pig that is currently slaughtered is between $ 110 and $ 115 / live ...

Source: Bichos de campo