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Oct 02, 2019 09:30

How growth in meat production has driven business in Latin America

The impressive advancement of poultry and pork production in the countries of the continent to meet world food demand

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Poultry and pork production in Latin America has been steadily increasing over the past ten years, according to data from the US Department of Agriculture (USDA). During this period, the volume of chicken meat increased by 29.3%. Already pork production jumped 32% in the same decade. The two proteins together are expected to surpass the 24 million ton mark by 2019.

In this scenario, countries such as Brazil and Argentina are the most competitive as producers and exporters of animal protein, but others have grown significantly, such as Peru, Colombia and Bolivia. Mexico is another important granary, but its production is destined for the domestic market.

USDA data attest to the report “Agricultural Perspectives 2019-2028”, produced jointly by the Organization for Economic Cooperation and Development (OECD) and the United Nations Food and Agriculture Organization (FAO). According to the document, the stock of chickens has tripled in the countries of Mercosur and Central America in the last three decades, and more than tripled in the Andean countries and the Caribbean.

THE HUGE LEAP OF LATIN AMERICAN COUNTRIES

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The three main producers of chicken meat on the continent remain Brazil, Mexico and Argentina. Brazil alone accounts for 62% of all Latin American production and is expected to account for 13.6 million tons this year, according to the USDA. Production in the country grew 24% from the 10.98 million that were produced in 2009.

Just in 2018, Brazil exported 4.100 million tons, representing foreign exchange revenues of US $ 6.571 billion. From January to August 2019 exports of fresh chicken meat totaled US $ 4,196.21 million. In volume 2.570 million tons were shipped in the period.

The highlight in chicken meat production on the continent, however, is Colombia. The USDA database points out that the country produced only one million tons of poultry protein in 2009. Ten years later, Colombian chicken meat reached 1.75 million tons. That is, there was a growth of almost 65%, which is the highest index of the entire continent.

Brazil is also the largest producer of pork in South America, according to USDA data. There are 3.9 million tons of this protein, which represents 68% of the volume produced by the set of South American countries, which is 5.8 million tons.

Argentina comes next, with an estimated 670,000 tonnes for 2019. The number is important considering that it jumped 132% in ten years. In 2009, there were only 289,000 tons. Chile is the third largest producer, with 555 thousand tons, but growth of only 8% in ten years.

Also in pork, Colombia surprises, with a jump of 140% in production. It was 171 thousand tons in 2009 and now it should be 410 thousand tons. 

LATIN AMERICA AS BARN OF THE WORLD

The Rabobank International's Global Animal Protein Specialist Nan-Dirk Mulder says growth in poultry meat production in Latin America has been and will continue to be higher than the global annual average over the next decade. He has other promising estimates for Latin America.

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“The global market will grow by 60% over the next 20 years and Latin America will occupy almost 30% of global growth,” says Nan-Dirk, pointing out that the continent will lag behind Asia in regional growth.

AN ADVANTAGE SCENE FOR NEW BUSINESS

The advance of Latin America above the world average in meat production indicates that the countries of the region, especially Brazil, are the world's breadbasket. “What we have recorded over the last 18 years since we created AveSui - Latin American Poultry, Pork and Fish Fair - is a steady growth in business and the number of exhibitors and international visitors”, says Andrea Gessulli, AveSui Director, the largest poultry and pork fair on the continent.

According to her, Brazil is a reference in the production of grains and animal protein and Latin American companies and producers use AveSui as a hub for the search for new technologies, businesses and knowledge.

The last edition of the fair, which took place in Medianeira, Paraná, near the border with Paraguay and Argentina, in the productive center of Latin America, most of the 16 thousand visitors were foreigners. The countries with the largest number of participants were Argentina, Paraguay, Peru, Colombia, Ecuador and Venezuela. “In this 2019 edition, according to estimates, nearly R$ 1 billion in business were generated. In this sense, AveSui catalyses all this potential in Latin America to meet the world's food demand, especially that of the Asian countries, which are the future”, concludes Andrea Gessulli.

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