No good news for the poultry industry in Argentina

Buenos Aires, August 22nd. The official indicators for the poultry industry in the first half of 2018 are not good. The slaughter decreases 4.7 percent, exports also dumped 16.5% and per capita consumption was reduced to the equivalent 42.2 kilograms per year.

The rise in the feed prices (mostly due to the elimination of export tax over the corn), the rise in the energy cost, labor and other inputs, added to a weak demand is running industry to collapse. Some industries are plunged in a deep crisis, like Rasic, the former second largest poultry company in the country, BRF (which had acquired Avex in Cordoba Province) and EcoAve, a medium size company in Buenos Province.

For example, poultry slaughter at Buenos Aires Provinces (where both Rasic and EcoAve are based) drop 12% from 2017 while at Cordoba Province (were BRF is placed) drops 20 percent interannual.

Also, the fall in the poultry slaughter is deeper as the months pass. In June it was -9.5% interannual, the highest of the year. In the first half of 2018, industry processed 345 million head, versus 364 in 2017.

But the exports are plunged in the latest month. At the beginning of the year, industry exported 20,650 tons versus 21,356 in 2017, i.e. a fall of 3.3%. But in May, exports had collapsed to 12,099 tons versus 22,180 in 2017, a fall of 46 percent interannual.

In the local media, it is blamed to higher feed costs, energy costs and imports from Brazil for the bankruptcy of EcoAve, the industry owned by Perea Family. Meanwhile, Brazilian BRF is trying to sell its Rio Cuarto plant, maybe to the largest poultry industry, Granja Tres Arroyos.

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