Traditionally, Argentina directed the development of sheep towards the obtention of wool, leather and meat. Wool was developed more than other products – basically in the Patagonian region, due to the marketing condition of being a long-lasting product and not requiring the flock slaughtering.

By virtue of this wool tradition, over 50% of Argentine sheep stock corresponds to wool producing breeds (Merino) and double purpose (Corriedale, Rommey Marsh, Lincoln and Criolla). Only one breed is meat producing, the Hampshire Down.

In the past decades, the change in production systems, the advancement of the agricultural frontline, the replacement of sheep by bovine cattle, and desertification generated a strong retraction of sheep stock. In the 60’s, the stock was over 48 million heads, in the 80’s it reached 32 million; in the 90’s 24 million. Presently, it only exceeds 12.5 million.

The great development of double purpose breeds provides for the estimation that the tendency for meat obtention will basically depend on the price relationship between both products (wool and meat), as well as on the development area, and the flock composition.

THE SHEEP RODEO

• According to the results of the last Agribusiness National Census (INDEC), the catlle stock is mainly concentrated in the Patagonian region, while the provinces of La Pampa, Neuquén, Rio Negro, Santa Cruz, Chubut and Tierra del Fuego concentrate 67% of the heads total.

• Furthermore, the province of Buenos Aires has 11% of the total and the Mesopotamian region – Entre Rios, Corrientes and Misiones- is equivalent to 10%.
• At national level, almost 5% of sheep heads (646 thousand) are organically produced, all of them in the Patagonian region. Santa Cruz has 54% of this type of cattle, which is controlled by the National Service of Agroalimentary Health and Quality (SENASA), and Chubut has 24%.
• During 2004, the area devoted to organic cattle-breeding, was of 2.3 million hectares, of which the provinces of Tierra del Fuego, Santa Cruz and Chubut concentrate 81%.

SLAUGHTERING AND MEAT PRODUCTION

• In the past six years, the commercial slaughtering of sheep in plants registered and authorized by the SENASA for federal traffic and export, exceeded 750 thousand heads per year, in average.
• It can be seen that the sector is undergoing a sustained growth, as only between 2003 and 2004 the sheep for slaughtering increased by 30%.

• The meat production estimated in 2004, was over 13.5 thousand tons.
• The meat processing industry is located in the production areas. The Patagonian provinces and Buenos Aires concentrate the greatest number of processing plants authorized by the SENASA.
• Thus, during 2004, nine plants located in the Patagonian region concentrated 74% (784 thousand animals) of federal slaughtering.
• In addition, ten meat processing plants concentrated 77% of slaughtering, a value distributed in the provinces as follows: 35% in Chubut, 52% in Santa Cruz, 9% in Tierra del Fuego, and 4% in Buenos Aires. Notice that the meat processing industry has been showing certain activation since 1998: then, only 31 processing plants were working, but despite going down to 27 in 2000, they recovered to total 34 in 2004.
• During the first quarter of 2005, sheep slaughtering exceeded 616 thousand heads, representing a growth of 34%, as regards the first quarter of 2004.

CONSUMPTION

• The consumption of this meat has been traditionally commoner among the people of Mediterranean origin and in religious communities, above all in Jewish and Islamic communities.
• In Argentina, the yearly average consumption is less than 250 grams per inhabitant. However, the self-consumption in the Patagonian farms is remarkably higher, by reaching values between 15 to 26 k/inh./year.
• The product demand varies according to the price of substitute meat (beef, pork, poultry), to the consumers’ income and to eating habits. The tendency to consume low fat food, is another contribution to limit the demand for lamb meat.
• The national market can be segmented according to the socio-economic level of the consumer. The capon and sheep are categories for mid to low income people, especially in the rural areas. The lamb is a “gourmet” food, for mid to high income levels.
• The product is not easily accesible in time and shape for the local consumer. Some chefs state that there is not a proper development of logistics and distribution, therefore, the catering sector is being mainly supplied by the external market.

EXPORTS

• Argentina has an import share – assigned by the European Union – to place around 23,000 tons of bone meat in that block at zero rate.
• However, our country cannot meet that share, due to the lack of offer, and to the recent sanitary barrier for aphthous fever.
• In the period 1999-2004, exports had an yearly average of 1,900 tons, but they were tripled in the last three years.

• Particularly in 2004, the volume of exported lamb meat was of 6.2 thousand tons, with an estimate value of US$ 16 million.
• The most relevant products were carcasses (75%), boneless meat (6%), legs (5%) and fore quarters (2%), among others.
• 80% of the exported total was concentrated in European Union countries, such as Spain (44%), Great Britain (15%), Ireland (13%) and Belgium, Italy and Germany (3% each).
• Notice that since April 2002, the Permanent Veterinarian Committee of the European Union has accepted the entrance of bone sheep meat from the Patagonian provinces (Chubut, Santa Cruz, Tierra del Fuego and below parallel 42 in the Province of Rio Negro).
• During the first quarter of 2005, exports reached 5.2 thousand tons at US$ 12.5 million, which means an increase of 49% in volume and 44% in value.
• The exports composition equals 2004 figures – mainly carcasses (77%)-, like in European Union countries, where Spain concentrates half the sales.

IMPORTS

• The import of lamb meat had a growing tendency until 1998, when it began to go down. It presently represents 1.5% of the estimated production.

• In 2004, imports of lamb meat reached 194 tons, and a value of US$ 222 thousand, representing a fall of 15% as regards the previous year.
• 55% of purchases were made in Uruguay and 38% from New Zealand.
• 55% corresponded to barbecue cuts and the rest to boneless meat.
• Imports were significant until 2001, later, in the past three years the income averaged 250 tons, showing that the local market development is being supplied by national raw materials.
• During the first quarter of 2005, imports of lamb meat reached 85 tons, at US$ 138 thousand, representing an increase of 47% in volume and 24% in value, as regards the first quarter of 2004.

INDUSTRY RECOVERY

• Act 25422 was passed in May 2001, regulated by Decree-law 031/2002. The purpose of this act is to devote part of the national budget to recover sheep cattle and includes, among other issues, the creation of a Trust Fund for the Recovery of Sheep Industry. The application authority is the Department of Agriculture, Cattle-breeding, Fishing and Food (SAGPyA, in Spanish).

BIBLIOGRAPHY

INDEC Instituto Nacional de Estadística y Censos, ENA 2002 - SENASA, Dirección Nacional de Fiscalización Agropecuaria, Estadísticas de Importación y Exportación; Dirección Nacional de Fiscalización Agroalimentaria; Gerencia de Planificación y Control de Gestión, oficina de estadísticas; Dirección de Calidad Agroalimentaria Coordinación de Producciones Orgánicas “Situación de la Producción Orgánica en la Argentina durante el año 2004” - SAGPyA, Dirección de Ganadería -

CHAMBERS

UNIÓN DE LA INDUSTRIA CÁRNICA ARGENTINA (UNICA) - Avenida de Mayo 981 piso 2 oficina 215, Ciudad de Buenos Aires. - Tel: 5411-4345-0354/2491 - Fax: 5411-4345-1864 – E Mail: unica@unica.org.ar.