The Recovery of Meat Consumption in Argentina
The demand for beef, poultry, and pork in Argentina is showing signs of recovery, with consumption exceeding 115 kg per inhabitant per year. Beef leads the way with 53 kg, followed by poultry with 45 kg, and pork with 17 kg per inhabitant per year.
Factors Contributing to the Recovery
This increase in consumption can be attributed, in part, to the severe and prolonged drought that the country has been experiencing. This drought has led to a forced liquidation of the cattle herd, resulting in a greater supply of meat and relatively lower prices for consumers.
Impact of Drought and Frosts
The drought and frosts have had several negative effects on the livestock industry, including higher mortality rates, lower body condition of the herds, forced sales, loss of pastures, increased feeding costs, and lower pregnancy rates. These factors will likely result in a smaller number of calves this year.
Price Lag and Future Outlook
The ongoing liquidation of the cattle herd, combined with the lack of rain and low temperatures during winter, has kept meat prices relatively low. However, as spring arrives and rainfall increases, the retention of cattle in the fields is expected to begin.
Record Production of Poultry and Pork
In addition to the increased supply of beef, poultry and pork production in Argentina has reached record levels in 2022. Poultry meat has exceeded 2.32 million tons, approaching the maximum consumption reached in 2020. Pork production is also breaking records, with an expected output of over 750,000 tons of bone-in beef this year.
Potential of Argentine Beef
Despite the challenges faced by the livestock industry, beef production in Argentina is expected to recover in the coming years. The country’s competitive advantages, such as the recovery of pastures and efficient management by ranchers, position Argentine beef as a potential leader in the global market.
The Rise of Synthetic Meat
While the production of synthetic meat from stem cells is gaining traction worldwide, Argentine meat producers have an opportunity to compete. The carbon and water footprint of traditional meat production is being compared to that of synthetic meat, with the former claiming lower environmental impact.
New Business Opportunities
Meat producers in Argentina can explore new business opportunities by measuring the carbon and water footprint of their production systems. Silvopastoral systems, with their carbon sequestration capabilities, can contribute to the mitigation of global warming and open doors for green bonds.
Capturing the Synthetic Meat Market
Argentine meat producers can also consider capturing a share of the synthetic meat market by utilizing high-quality stem cells from various bovine breeds. By offering superior quality synthetic meat, Argentina can position itself as a key player in this emerging industry.
A Promising Future
The future of the meat industry in Argentina depends on the decisions made today. With competitive carbon footprint values and potential for improvement, Argentine meat has a great opportunity to consolidate its position and increase its presence in the international arena.
The author is an agribusiness consultant
ARIEL COLMEGNA
According to an Israeli company, synthetic meat production generates 80% less CO2 emissions, uses 99% less land, and saves 96% of water compared to traditional meat production. Several companies, including Future Meats, Finless Foods, BlueNalu, Memphis Meats, Meatable, and Aleph Farms, are venturing into the production of synthetic meats.
These companies aim to produce poultry, pork, lamb, and beef that are healthy and sustainable, making their products accessible worldwide.
Argentine meat producers, known for their high-quality products, face the challenge of measuring the carbon and water footprint of their production systems. By highlighting the environmental benefits of their production methods, such as silvopastoral systems, they can maintain their competitiveness against synthetic meats.
The future of the meat industry lies in the hands of meat producers, consumers, and the environment. By embracing sustainable practices and seizing new business opportunities, Argentina can solidify its position as a global leader in the meat market.
What opportunities and challenges do Argentine meat producers face in the emerging synthetic meat market, and how can they position themselves as key players in this industry
Rgentine economist specializing in the agricultural sector.
“The meat industry in Argentina has shown remarkable resilience and is poised for a strong recovery. With its competitive advantage in traditional meat production, Argentina can navigate the increasing popularity of synthetic meat and continue to excel in delivering high-quality, authentic meat products to global markets.”