Why is chicken consumption almost equivalent to that of beef in Argentina?

Guillermo D. Rueda
[email protected]

"What we are experiencing so far this year is a transvamiento that makes us consume chicken on the order of 43/45 kilograms (per capita per year) .I think it's n & # 39; It is not uncommon to think that in the future, chicken meat is equivalent to beef consumption, it would not be the only country in these conditions, Brazil is one example. "

For Roberto Domenech, president of the Center for Poultry Processing Enterprises (CEPA), such a circumstance would not happen "in any fight, it has to do with the times."

Beef consumption reached the threshold of 50 kg per capita per year in the first three months of 2019 (year-on-year) for the first time in contemporary history, at 49.6 k / h / year.

Roberto Domenech, President of CEPA.

"With this movement of beef, especially in terms of price, consumption has dropped and chicken meat has arrived," said the director.

"Suddenly, we received a completely atypical demand at the end of February, when the sector was experiencing low seasonal prices .It is inevitable, because with the heat, we run the risk of mortality and we were then at 2.7 and 2.8 kilos alive for slaughter, while today, they are 3.1 and 3.3 kilos, "said Domenech, in dialogue with "New."

"What is happening is that we have a great tradition, and if we go back to 35 or 40 years, we consumed 90 kilos of beef and 25 years ago we were 78 kilos. to say that it is down and partly in export, "he said.

Domenech said that it was one of the reasons for the creation of the so-called meat table.

The chicken is still in the gondola, one of the keys to the growth of the sector.

"We intend to give absolute peace of mind to the people and governments, that animal protein is not lacking and that it is at a reasonable price," he said.

"That yes something is certain: they will not always be the same meats.There will be opportunities, like beef now, in which it has an international demand." Argentina has once again occupied the place that It used to be in terms of exports, and that changed the values, and today people are going to the chicken or the pig, keeping that habit, but in smaller quantities, "he said. -he explains.

"The total consumption of meat in Argentina, which is of the order of 117/120 kilos per capita per year, is a zero-sum market.Our sector will sell more because it will consume less of it. 39, another, and so on ".

-Domenech, is it good or bad that chicken consumption is increasing in the country?

-To have. Forty years ago, there was no alternative, with industrial poultry keeping only 10 years old. But here's a fundamental reason: beef has always been valued for nothing to do with international values ​​and the cost of making a steer, with the time it requires, and so on.

"Gradually, he put different cuts for the domestic market in values ​​close to those of the international market.In the case of chicken, it began to be an expensive product because it was selective and, with the growth of production It was becoming a habit today, I encourage you to say that there is no house where you do not eat chicken, at least twice a week in three others and in about four, "he said.

"It kind of brought about a balance: in the United States, it's consumed in the same way: 20 kilos of pork, 42/43 kilos of chicken and 38/41 kilos of beef and Brazil, 45 kilos of chicken; 38 cattle and 18/20 pounds of pork – that is, the world is more or less like that.

"The issues raised by the chicken include that, for its record, this change in consumption is positive for Argentina."

– The correction is only for the price?

-The place that has had the chicken and the volume of consumption has a major factor and is decisive worldwide: the price. It is by far the most economical meat. It is the cheapest compared to others.

"In the international market, one bad costs $ 2,800 / $ 3,000 a tonne, a back room is worth $ 1,300 (Tn.), And any cut of beef costs between $ 7,000 and $ 11,000 (per ton).

-Some households say that the performance of the chicken is not the same as that of beef …

-They are different products. We develop a discussion group, where people of different ages are interviewed.

"We check that a full use is made.In general, and except for the supreme or possibly a boneless thigh or grilled chicken, the rest of the alternatives are considered an animal protein in a product group." that is, chicken rice is a supplement or part of what you might call stew, a wok is the same, it is an elaborate meal that complements itself. "

-What is happening with the offal?

-It had a brilliant time when poultry farming was not industrial and that today, they are reaching an international market. I understand that giblets could have a better price on the domestic market, be more accessible, but give no response to consumption. It's the truth.

-What were the goals of the chain to achieve this reality?

-The sector was growing steadily, but two elements were essential. First, to be able to open to export, because that is what allows a better management of the stock.

"The second is a growth project that we put into practice in 2002, in which we were in a very favorable position to export and capitalize, which allowed us to take on a very important scale and, as a result, when we were very Well placed to export, we are committed to the domestic market and we have experienced steady growth, with 10 years of continuous investment and many investments to access investment credit.

"It was a vital aspect, because the sector has grown from 20 million to 67 million chickens a month, as is happening today, and that's not why it was born. sheds, the dressing process needs to be done more quickly, add logistics and transform technology delayed by ongoing crises.

"This has allowed us to get acquainted with the new technologies, but now we are at least five years behind in the investments." "Do not forget that it's a sector which requires a permanent investment, which pushes for genetic improvement and research on a balanced diet You must be at the top. "

– Is growth expected for the sector?

-We consume between 43 and 45 kilos (h / a), as it is recorded in this quarter, but we produce 53 kilos, because there are 8 or 9 who will export.

"We are now seeing an improvement in international prices, which was very complicated in the case of chicken, and in this context it is important that we have more exporters, so last week six new poultry were approved for export to China, for a total of 20 refrigerators.The 14 that were available are working with China, which is the main destination of our exports, with nearly 25%, "said Domenech.

The sector came to export about 800,000 tonnes per year between 2011 and 2012, then dropped to 300,000 tonnes.

"For poultry farming to be predictable and stable, the domestic market must have a share of exports, we export between 14% and 15% and we aim to reach 25%, but with a market with such high consumption. than the one we have, which becomes inelastic if we do not enjoy another chain of meat, when the chicken remains the only way to adjust the productions and consumption is with the price.

"Exactly, you can not operate today with a very low price and tomorrow with a high price, you must have a stability of that meaning and that is what export gives you."

Argentine chicken exports in 2018 amounted to 230,000 tons. About 260 000 TNS are expected for this year. US $ 460 million has entered the country and is estimated at US $ 520 million for this year, with the poultry sector retaining 3 pesos per dollar exported.

Diversification and beef

By Adrián Bifaretti
Head of the internal promotion of the IPCVA.

The diversification of meat protein consumption in Argentina would allow the cattle and beef chain to move with less pressure and conflict, their process of boosting competitiveness, based on growing market demands more and more globalized.

The fact that beef behaves like a good salary in our country, that the meat industries (with few exceptions) do not show an innovative and aggressive attitude, and that sanitary and nutritional quality are not considered as determining variables of Demand, defines a particular scenario in which the possibilities of diversification of consumption could increase, allowing a more complete knowledge of the strengths and weaknesses of each alternative meat of consumer perception.

Adrián Bifaretti, in charge of the internal promotion of the IPCVA.

In this sense, the Institute for the Promotion of Argentinian Beef (IPCVA) has, together with the consultant TNS-Gallup Argentina, generated relevant information that has been published in the book "Consumption of beef and veal in Argentina ".

In this work, which badyzes the functional attributes of the different types of meat, it is shown how Argentinean households give a preferential position to beef in terms of yield, its adaptation to different kitchens and the family palate.

However, these attributes also highlight that chicken meat is very close to what Argentina considers to be ideal meat and, also, weaknesses in pork that should be processed and improved so that this meat can function as an alternative . concrete against beef.