The Recovery of Meat Consumption and the Potential of Argentine Beef in the Global Market

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 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, and increased feeding costs. These factors have also resulted in a smaller number of calves this year.

Price Lag and Future Outlook

As the liquidation of the cattle herd continues and the supply of forage remains low due to the lack of rain and low winter temperatures, meat prices are expected to remain relatively low. However, with the arrival of spring and increased rainfall, the situation is expected to improve.

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 production has exceeded 2.32 million tons, close to the maximum reached in 2020. Pork production is also breaking records, with an expected output of over 750,000 tons this year.

Potential of Argentine Beef

Despite the challenges faced by the livestock industry, there is great potential for the production and export of Argentine beef in the coming years. The industry has competitive advantages and can even compete with synthetic meat manufacturers that aim to supply 30% of the world’s demand by 2040.

The Rise of Synthetic Meat

The global market for synthetic meat is growing, with over 70 cellular livestock companies developing lab-grown meat from stem cells. While the cost of synthetic meat production is currently higher than traditional methods, these companies claim to have a lower carbon and water footprint.

The Challenge for Argentine Meat Producers

Argentine meat producers, known for their high-quality products, now face the challenge of measuring the carbon and water footprint of their production systems. Silvopastoral systems, with their carbon sequestration and storage capabilities, offer a competitive advantage over synthetic meats.

A New Business Opportunity

With the potential to capture part of the growing synthetic meat market, Argentine meat producers can leverage their expertise in various bovine breeds and offer high-quality synthetic meat. This presents a win-win opportunity for producers, consumers, and the environment.

The Future of Argentine Meat

By studying and improving the carbon footprint of their meat chains, Argentine producers can consolidate their position in the international market. The country has a great opportunity to increase its participation and become a leader in sustainable meat production.

The author is an agribusiness consultant

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The industry aims to reduce costs and increase efficiency in order to reach mass production and widespread adoption. The rise of synthetic meat poses a potential challenge for traditional meat producers, but also highlights the need for sustainable and environmentally-friendly alternatives in the meat industry.

Overall, the meat consumption in Argentina is experiencing a recovery, driven in part by the forced liquidation of the cattle herd due to drought, resulting in lower meat prices for consumers. Despite the challenges faced by the livestock industry, there is still potential for the production and export of Argentine beef, which has competitive advantages over synthetic meat. However, the rise of synthetic meat as a global market trend highlights the need for traditional meat producers to adapt and consider sustainable alternatives in order to remain competitive.

How can the Argentine meat industry balance the potential for increased production and export of Argentine beef with the need for sustainable and environmentally-friendly practices in light of the growing popularity of synthetic meat

The Argentine meat industry can balance the potential for increased production and export of Argentine beef with the need for sustainable and environmentally-friendly practices in several ways:

1. Embrace Sustainable Farming Practices: Implementing sustainable farming practices can help reduce the environmental impact of livestock production. This includes the responsible use of water, reducing greenhouse gas emissions, and managing land and soil resources efficiently.

2. Invest in Technology and Research: The Argentine meat industry should invest in research and development to improve production efficiency and reduce environmental footprints. Technological advancements can enable better feed conversion, waste management, and energy efficiency.

3. Support Regenerative Agriculture: Promote regenerative agriculture techniques, such as rotational grazing and cover cropping. These methods help restore soil health, enhance carbon sequestration, and improve biodiversity on farms.

4. Collaborate with Government and NGOs: The meat industry can collaborate with governmental agencies and non-governmental organizations (NGOs) to establish sustainable practices and standards. This can include setting emission targets, implementing traceability systems, and obtaining certifications.

5. Diversify Product Offerings: In response to the growing popularity of synthetic meat, the Argentine meat industry can diversify its product offerings. This may include investing in research and development of plant-based or cell-cultured meat alternatives. By expanding into the synthetic meat market, the industry can remain competitive while catering to changing consumer preferences.

6. Promote Transparency and Consumer Education: Engage in transparent communication with consumers about the industry’s sustainability efforts. Educate consumers about the benefits of responsibly produced, high-quality Argentine beef to maintain demand while highlighting the industry’s commitment to environmental stewardship.

7. Foster Collaboration within the Industry: Promote collaboration among different stakeholders within the meat industry, including producers, processors, and exporters. Sharing best practices and knowledge can help drive sustainable improvements across the entire value chain.

By implementing these strategies, the Argentine meat industry can strike a balance between increasing production/export and adopting sustainable practices, ensuring long-term viability in a changing market landscape.