POULTRY PRODUCTION

Considering that balanced feed is the main supply of this activity, it is natural that the Argentine poultry production is concentrated in the cereal region of the country. It is estimated that there are 2,500 farms in the province of Entre Rios, which production is equivalent to 43% of the national production. On the other hand, the province of Buenos Aires hosts around 1,400 farms, representing 48% of the country total.

The production and industry are almost totally vertically integrated. Chickens fattening is carried out in farms which in most cases receive BB chickens, the balanced feed and the professional counselling from the integrating companies. The integrated producers provide the premises, labor, heating and electricity. In general, the integrators include the link with the meat processing plant and sell the slaughtered product.

This level of integration has provided for an improvement of efficiency ratings. In the last five years, there has been a reduction of the mortality percentage and slaughtering age, plus an increase in the live weight at slaughtering and an improvement of feed conversion.

In sanitary terms, Argentina is free from the Newcastle Disease with vaccination and from Avian Influenza, a situation acknowledged by the Epizooties World Organization (OIE).

INDUSTRY AND CONSUMPTION

• In the past six years the national production of poultry meat (barbecue chicken mainly) reached an average of 831 thousand tons. There has been an important recovery between 2003 and 2004, a time period when meat production increased 22%.
• There are 42 poultry processing plants at national level registered before the National Service of Agroalimentary Health and Quality (in Spanish, SENASA). Ten of them concentrate 67% of slaughtering.
• Geographically, the industry is principally located in the province of Entre Ríos, where 57% of the slaughtering takes place. The plants following in importance are in the province of Buenos Aires and the rest of them in Cordoba, Mendoza, Rio Negro and Santa Fe.
• During the first quarter of 2005, the slaughtering reached 88 million birds, representing an increase of 11% as regards the first three months of 2004.

• The regulations to be fulfilled by processing plants are included in Chapter II of the Argentine Food Code (Act 18284/69), Decree-law 2126/71). Chapter VI of the same Code defines some processing, preservation and poultry sale conditions. The Codex Alimentarius, Volume X “Carne y Productos Carnicos” (Meat and Meat Products), includes the Code for Meat Health Practice among other guiding material.
• Both at the poultry breeding stage and at the food elaboration, fertile eggs hatching and slaughtering and processing of the finished chicken stages, the processing plants must follow the standards set up by the SENASA to guarantee the innocuity and quality of the finished product. The entity carries out permanent controls on the plants.
• The vertical integration of processes, typical of this sector, has instrumented the traceability system, and ends with the incorporation of quality assurance systems. 15 processing plants have homologated HACCP and one of them has obtained the ISO 9001 standard certification.
• Slaughtering plants sell their production through different channels. In many cases the chicken is offered ready for direct consumption, and in others it becomes the supply of an elaboration process of breaded products.
• Thus, the companies have different customers, such as super and hypermarkets, processing plants of semi-elaborated products and the institutional channel, including restaurants, hotels, bars, Armed Forces agencies, hospitals, diners, etc.
• A variety of presentations can be found on the Argentine shelves: refrigerated or frozen whole chicken (with or without giblets), in pieces (breast, legs, thighs and wings), boneless chicken, or breaded pieces (“milanesas”, snacks).
• The national consumption of poultry meat is 21.98 k/inh., a level showing a growing access of the population to the product. On one hand, the reduction in the consumer price and its relationship with beef price were favourably combined to provide more competitiveness. The significant price reduction was the result of the industrial cost reduction – by incorporating technology-, of the strong chain integration and of the incidence of the foreign market opening. On the other hand, the consumption was further increased due to the dieting and nutritional qualities of poultry meat, together with the development of semi-ready or prepared products responding to changes in the consumer’s habits.

EXPORTS

• As regards exports, the sector shows a strong growing tendency. In eight years, exports increased from 13 thousand tons – at US$ 10 million in 1996 – to 89 thousand tons at US$ 77 million, in the twelve months of 2004.
• By comparing the figures of 2004 against those of 2003, foreign sales increased 47% in volume and 57% in value.

• In the cumulative annual, the main exported products were: whole chicken (31%), paws (20%) and in pieces (18%). The principal destinations were: Chile, 34% (whole chicken and balanced feed flour); China, 21% (paws and wings); South Africa, 9% (whole chicken, breasts, poultry pieces and wings); Germany, 7% (breasts, thighs and processed products); Saudi Arabia, 5% (whole chicken and breasts), and Holland, 5% (whole chicken, breasts and breaded breasts).
• Other markets showing consolidation signs are the Democratic Republic of Congo, which absorbed 3% of the exported total, mainly demanding whole chickens and giblets, and Russia, with 2%, by buying whole chicken, hind quarters and wings.

• There are 22 plants authorized to export to different markets; 12 of them meet the European Union standards and are authorized to sell to the member countries, and they also place products in Asian and Middle East countries.
• Although the Argentine consumer prefers a heavier chicken (2.2 – 2.5 k) and of yellowish colour, the companies have been able to adapt themselves to the requirements of each destination market. In general, we notice that in many importing countries they prefer the small white chicken, with an average weight of 1.5 k.
• The composition and destination of exports have changed along the years. In the 90’s, the main product was cooked chicken meat, or boiled hen, aimed for European countries. As from 1996, paws are being sent to Asian destinations such as China and Hong Kong.
• Other products of higher value added have been incorporated, such as breast and leg/thigh pieces (Europe), whole chicken (Russia), giblets and animal feeding flour (Chile).
• During the first quarter of 2005, the exports of poultry meat and subproducts, reached 22 thousand tons and a value of US$ 20 million, these figures represent an increase of 47% in volume and 43% in value.

IMPORTS

• Between 1993 and 1994 poultry meat imports represented around 10% of the national production.
• Later, the figures went down until representing less than 1% during 2004, an event closely related to the local production recovery.

• During January – December 2004, imports were almost 12 thousand tons, for US$ 8.6 million, equivalent to a fall of 43% in volume and 52% in value as compared to the same period in 2003.
• The imports composition in the twelve months of 2004, was 78% of flour and balanced feed and 17% of fresh and processed meat.
• The main supplier was Brazil, with a share of 90%, followed by USA, with 9%.
• The imports of poultry and derivated products during the first months of 2005, reached 2.6 million tons with a value of US$ 2.1 million, which implied an increase of 19% in volume and 17% in value, as regards 2004.

POULTRY PROCESSING PLANTS AUTHORIZED TO EXPORT TO THE EU

S.A. Productora Avícola, Miralejos SACIFIA, Rasic Hnos., Granja Tres Arroyos, Avícola Capitán Sarmiento, FEPASA, Pollolín S.A., EFASA, Delasoie y Eggs S.A., FrigoTres S. A., Super S.A., Soychú SACIFIA, Orlando Tossoni, Las Camelias S.A., Feller S.R.L. Supermercados Toledo S.A.

BIBLIOGRAPHY

SAGPyA - Dirección Nacional de Alimentación - Dirección de Ganadería, Dto. de Granja - SENASA - CCFYC - Oficina de Estadísticas de Comercio Exterior - D.N.F.A. Estadísticas – Coordinación de Aves, Ovoproductos y Especies Menores - AVIMETRIA.

CHAMBERS

Centro de Empresas Procesadoras Avícolas (CEPA) - Corrientes 127 - 5º Piso - Oficina 515/16 Ciudad de Buenos Aires. Tel./Fax: (5411) -4314-0380/4314-1506/4311-7314. E-Mail: cepa@intermedia.com.ar - Cámara Argentina de Productores avicolas (CAPIA) - Corrientes 117 - 7º Piso - Oficina 710, Ciudad de Buenos Aires - Tel./Fax: (5411)-4313-5666 – E-Mail: capia@capia.com.ar - Web: http://www.capia.com.ar