Almost 488 million chicken were slaughtered in 2007, i.e. an 8.2% increase vis-à-vis 2006, thus marking a consecutive increase for the 5th year in a row since 2003, which constituted a turning point in the sector’s growth curve. Poultry production totaled 1,244,000 tons in 2007, 7% more than the 1,059,000 tons recorded in 2006.

• A total of 47 poultry slaughtering houses operated within the scope of SENASA (National Service of Agricultural Food Quality and Health), since another firm (Avex S.A., from Río Cuarto, Córdoba Province), joined the 46 companies doing business the previous year.
• Poultry processing in slaughtering facilities grew 21% as compared to 2006. This results from the increase in cut-up chicken (23%), cold cuts (21%) and, to a lesser extent, giblets (10%). All three lines are estimated to account for 18% of the production supervised by SENASA. This estimate does not include cutting outside plants, performed by supermarkets and/or butcher shops, pollerías , etc.

• A comparison of values for 2007 and 2006 shows some minor changes in efficiency ratios, except for death rates, which increased by 8.4% as a result of high temperatures in the summer months and to deaths in 3Q. Added to this is the increased demand by poultry farms, which results in a larger number of animals per square meter, less resting between breeding periods and re-use of beds.

FOREIGN TRADE

• Poultry exports in 2007 exceeded the values recorded for 2006 with a growth rate above that of the previous year (180,000 tons with a value of USD 214 million FOB). These figures imply a 25% increase by volume and a 54% growth in value terms.

• The share of total poultry exports in poultry meat production has increased in recent years, to an actual 14.5%.
• Within exports, significant increases were also recorded in the delivery of edible products (whole chicken, cut-up chicken and others), which totaled 33% by volume and 55% by value.

• As to the breakdown of poultry exports, a comparison between 2007 and 2006 shows increases in whole and cut-up chicken exports: whole chicken (23% by volume and 53% by value); chicken breast (21% by volume and 61% by value); and leg/thigh (31% by volume and 39% by value). In turn, processed hen exports grew 24% by volume and 20% in value terms.
• The items encompassed under “Other Edible Products” (wings, carcasses, giblets, etc.) grew 44% by volume and 102% in value terms, whereas exported feet increased 7% and 35% by volume and value, respectively.
• Total poultry imports (chicken and turkey) increased by 15% (18 K tons) from 2006 figures, whereas in value terms this increase amounted to 55% (USD 25 M), i.e. 1.5% of estimated domestic production.

• This larger volume related to an increase in cut-up chicken imports (breasts and leg/thigh), whereas there was a decline in “Non-edible Products”. Imports were broken down as follows: giblet meal and bone and gut meal (48%); cartilage (24%); breasts (16%); leg/thigh (5%); chicken nuggets and other edible products (7%). Brazil accounted for 91% of total imports, with 9.9% coming from the USA and the remainder, from Denmark.
• Turkey imports, mostly from Brazil, totaled 1,696 tons with a value of USD (thousand) 2,698 FOB, i.e. a 26% increase by volume and a 37% increase by value as compared to the preceding year.
• Whole turkey was the main import product (60%), followed by turkey breasts (13%) and “others” (25%), which include trachea; meat and bone meal; giblet meal, and cartilages.

CONSUMPTION

• Poultry meat apparent consumption grew by 4% vis-à-vis 2006, to 28.92 Kg./inhabitant/yr in 2007. Total apparent consumption recorded a volume of 1,138,000 tons for the period under review.
• In 2007, the corn/chicken ratio (8.05) remained 10% below the value for 2006 (8.94) because of marked increases in international corn prices, thus resulting in compensations being paid to poultry packing plants to offset the impact of these increases on domestic consumption.
• In turn, the asado (ribs)/chicken ratio (1.85) remained below the figure for 2006 (2.08) on account of chicken prices increasing above those of beef. Nonetheless, chicken meat is still a low-cost option to provide protein to the daily diet, under the influx of a Government-compensated domestic consumption.

2008: FUTURE PROSPECTS

• Poultry meat production could reach 1.4 million tons according to some projections for 2008. Exports are expected to reach 240,000 tons thanks to Argentina’s standing as a poultry meat producer, and to the negotiations under way with some Latin American countries, such as Venezuela.
• There will be sustained demand at the domestic level, and consumption is estimated to exceed 30 Kg./person/year.
• Argentina is working to maintain its status as a Newcastle Disease and Avian Influenza-free nation, thanks to the joint efforts of SENASA, SAGPyA (Secretariat of Agriculture, Livestock, Fishing and Foods), poultry producers and related agencies. Plans are under way to further strengthen animal disease surveillance and diagnosis activities this year.
• Moreover, SAGPyA continues with its training, dissemination and outreach activities for poultry producers on topics related to biosafety, management and other areas of interest.
• Growth of this sector is also supported by several areas through data bases, updates on quality and traceability, compensations, and information on international affairs.

The development of poultry production since 2003, both domestically and internationally, coupled with the strengthening of the public-private sector relationship, consolidates this industry as a major agribusiness and provider of top quality animal protein (chicken and eggs). This development has caused poultry and poultry products to occupy a significant position in domestic meat consumption. At the foreign front, it has resulted in Argentina ranking 8th as a poultry producer, and 6th as poultry meat and poultry by-products exporter.