Professional Documents
Culture Documents
Pork Sector in Uruguay
Pork Sector in Uruguay
2012 0
Index
1. 2. Introduction............................................................................................................... 3 Sectorial characteristics ............................................................................................ 3
3. Pork chain in Uruguay................................................................................................... 4 3.1-Structure ................................................................................................................. 4 3.2- Supply and demand ............................................................................................... 7 4. The global market and commercial opportunities ..................................................... 11
1. Introduction
The pork chain is one out of a set of 13 value chains selected to be impulsed by the government, for which a series of sectorial policies have been defined in order to strengthen, expand and articulate the productive structure of the country, increasing the added value and the technological content of the Uruguayan production. In particular, its potentials and restrictions were analyzed to increase its production and add value to it, seeking strategic objectives and measures to raise the above mentioned restrictions and exploit its potentials1. This report aims to analyze the recent evolution and the perspectives of the pork sector in Uruguay, as well as analyzing the world market and its projections. To such effects, the report is structured in the following way. The first section presents the main characteristics of the sector in Uruguay; secondly, the structure of the productive chain is examined as well as the supply and demand of the sector taking into account production, consumption, and commercial flow. Finally, the structure of the world market and its main perspectives are briefly commented.
2. Sectorial characteristics
Pork meat is the most consumed in the world: 73 million tons in 2010, equivalent to 43 % of the total consumption of meats. This meat is outlined for being a great source of proteins. In average, among 18 to 20 grams of protein per 100 grams of product. In Uruguay there was an increase in the consumption of pork meat in the last years. Although pork meat is the least consumed in our country (10,3% of total meats), in the first semester of 2011 its consumption increased 9% compared to same period of 2010, whereas the consumption of bovine meat, equivalent to 65% of the total consumption of meat, decreased 5,4 % in the same period. Uruguay imports meat and pork fats for its later elaboration. The raw material which supplies the industry of porcine meat is mostly of foreign origin (61%), mainly from Brazil and Chile, whereas the national production represents 39% of the raw material. Uruguay does not have any type of sanitary restriction in the production of pork. Uruguayan trade of pork is basically internal and is commercialized mostly in butchers shops and supermarkets.
Documents are available on the Ministry of Industry, Energy and Mines, National Directorate of Industrieshttp://www.miem.gub.uy/gxpsites/hgxpp001?5,10,529,O,S,0,,
2. Intermediation This link connects the actors of the primary phase to those of the industrial phase, composed by intermediaries and fairs. This latter canal is the most used by small producers who specialize in breeding for later selling their pigs. 3. Industrialization Includes the activities of slaughter and elaborated products. There exist diverse cuts of meat and products, the first ones are outlined as fresh cuts, backbone (loin), palette, roast and ham and the second ones can qualify in sausages and not sausages. This phase is composed by slaughterhouses, companies that elaborate products, companies that are only dedicated to production - with imported meat or native - and finally companies that sell porcine meat. As for the slaughterhouse, in 2010, the 10 authorized companies, registered slaughtering for a total of 177.104 heads, of which 4 not only slaughter but also elaborate products. More than 80% of the total slaughter is concentrated in the above mentioned companies. In reference to the companies dedicated to the elaboration of products, it is observed that besides the 4 companies previously mentioned, there exist 15 other companies dedicated to this production. It is necessary to emphasize, since it was mentioned previously, that many of these companies use imported raw material. Table 1 shows the slaughterhouses which elaborate products or not. In the first group, appears Mirnabel S.A with 41.7% of the total slaughter, followed by Ardistar S.A (33.7%). On the other hand, Arroyal S.A is the most important slaughterhouse which does not elaborate products with a participation of 10.3%. Table 1- Authorized slaughterhouses - heads slaughtered in 20103
Slaughter houses Mirnabel S.A (ex Pigusa) Ardistar S.A (ex cativelli) Arroyal S.A ( Lavalleja Department Government owned) Rondatel S.A Bordenave Motta, Alejo Eduardo Matadero Los Olivos Soc. Col. La Tablada SRL Luchasol S.A Matadero Mercedes Ltda Intendencia Mpal de Artigas Total
Number of pork heads
% s/total 41,70% 33,70% 10,30% 7,80% 2,70% 1,90% 1,20% 0,40% 0,20% 0,10% 100%
73.848 59.717 18.318 13.726 4.723 3.412 2.071 699 414 176 177.104
Only taken into account slaughterhouses that effectively slaughtered in the year 2010, for this motive the slaughterhouse known as Suc. Carlos Schneck is not listed.
Next table shows the companies that elaborated products from pork, with its commercial names. Table 2- Companies that elaborate products
Name Antic S.A Asur S.A- Entereza- S.A C. Cristiani & Hnos S.A Elas Gmez Ltda Est. J. Sarubbi S.A Frig. Centenario S.A Frig. Picorell S.A Frig. Ecocarnes S.A Granja La Familia Ltda Kali S.A Nolyser S.A Ottonello Hnos S.A Sindon S.A K y K Colonia Suiza Tilvenor S.A Bordenave Motta, Alejo Eduardo Matadero Los Olivos Soc. Col. Mirnabel S.A Ardistar S.A Propios Granja San Jos Tres Hermanos Lito Gmez Sarubbi Centenario Picorell Mossel, La Serrana, La Dolfina La Familia Kali- La Italiana El Ceibo Ottonello Doa Coca KyK Productos Porcinos Fenix Bordenave ---Source: Ministry of Industry Chains of value III.
Commercial name
4. Commercialization The national commercialization is made thru different channels, such as butcher's shops and supermarkets, though in a lesser scale, the direct sale of meat and elaborated products can be found. Likewise, to complete the meat chain, it is necessary to incorporate the inputs and the capital goods, like the food based in grains, forages and by products of the lacteal industry, among others. The increase of the production of grains in the country has contributed positively to the development of this chain since 70% of production costs are due to food supply.
5. Research In terms of research and development, its worth mentioning that Uruguay has, as part of the Agronomic Faculty, belonging to the National State University, a specialized Unit of Pork Producers which handles the education , research and extension plans as its main objective in porcine production. In the last years diverse programs and projects of investigation have been developed in areas linked to technology, genetics, quality of products, sanitary status, among others.
Production The supply of pork meat showed a recovery in 2010 after the significant fall registered in 2009. 2010 finished with a production of meat of 18.397 tons, which meant an increase of 6.4 % with regard to 2009. This increase is due to the major stock of porks-5 % in 2010-and to the consequent increase of slaughter.
Year
Stocks (Thousa nds of heads) 255 225 235 255 240 245 235 200
Tons
25.000
(tons of meat) 19.565 16.788 17.424 19.754 20.383 21.057 20.869 17.290
20.000 15.000
250
200 150 100 5.000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 50 0
10.000
Tons
Thousands of heads
2010 210 250 18.397 Note (1): Includes farm slaughter Source: Agricultural Statistical Yearbook 2011- Ministry of Agriculture and Fisheries
Source: Uruguay XXI based on data from Agricultural Statistical Yearbook 2011- Ministry of Agriculture and Fisheries.
Internal Consumption Uruguay has a meat consumption structure that differs from the rest of the world. While in our country, bovine meat is the most consumed (65%) and pork is in third place (with a participation of 10%), in the rest of the world pork meat leads the consumption of meat with a share of 43% in total. Figure 2- Structure of the consumption of meats in the world and in Uruguay - Year 2010
100% 24%
70%
27%
40% 43%
65%
Bovine Poultry
20%
Suine Ovine
10%
6%
10% 5%
World
-20%
Uruguay
However, in recent years theres been a change in the habit of meat consumption in Uruguay, increasing consumer preference for pork meat. In 2003, pork consumption per capita stood at 8.3 kilos, while in 2010 this consumption reached nearly 10.7 kilos per capita, determining that the growth of pork consumption in 2010 was the largest of all meats (13 %). Of continuing this behavior, it is estimated that in 2011 the consumption will reach 11 kilos per capita. This growth is due to the even greater participation in the share of consumption of fresh meat, combined with a major presence in places of commercialization such as supermarkets and butchers shops. Table 4- Evolution of the consumption of meats in Uruguay - kg per capita
2006 Bovine meat Poultry Suine meat Ovine meat 51,2 17,7 9,0 6,2 2007 51 14,7 9,6 6,2
Source: INAC
50%
40% 30%
38%
20%
10% 0% -10% -20% Bovine meat
13% 8% 5%
0%
Poultry
13% 2%
Suine meat
Ovine meat
-30%
Variation % (2006/2005) Variation % (2010/2009)
-22%
Exports and imports Foreign trade of the sector presents a deficit due to the characteristic from which Uruguay imports a high volume of pork meat that is used for domestic output. On the export side, these are very limited on both, porcine meat and elaborated products, which reflects that the industrial production takes the internal market as a destination. The imports, on the opposite side, reach a considerable value (US$ 43 million in 2010), of which 86% are imports of pork. Porcine Meat Regarding exports of pork there was a significant decrease in the period 2006-2010, being the Russian Federation the only destination in 2006 and exports in 2010 reached only 4 tons. It is necessary to emphasize that last years exports correspond only to Rondatel S.A. and its sole country of destination was Equatorial Guinea, country that registers purchases in every year of the period. On the other hand, in 2011 there were not registered exports of this item. Import values registered an upward trend in the period 2006-2010, presenting an average annual growth rate of 28%. It should be noted that imports in 2011, overcame the registered ones in the closed year 2010 - both in value and in volume. Brazil is the principal importer, representing 88% of the total of the volume imported, followed by Chile (5 %) and Denmark (4 %). The main importers are Centenario SA (19%), Sindon SA (18%), Wilisol (12%) and Carlos Shneck (9%) together representing 58 % of total tons imported in 2011.
Pork products The exports of products derived from the porcine industry are very scanty and consist of the following products: prosciutto, hams and shoulders. As shown in the table below, excluding the exports of raw ham which were continued from 2006- the other products were exported in punctual years. The exports of raw ham correspond to a sole company, ANDUGUAY S.R.L., whose destination is Brazil. Other products were destined to Brazil and United States. Table 6-Export of pork products- Data in US$ and Tons
Products Raw ham Others Hams Shoulders and cut thereof of swine Total 2008 US$ 3.360 0 0 3.360 Kilos 200 0 0 200 US$ 7.650 0 25.197 32.847 2009 Kilos 500 0 3.600 4.100 US$ 6.360 0 0 6.360 2010 Kilos 400 0 0 400 US$ 6.360 0 0 6.360 2011 Kilos 400 0 0 400
Regarding the imports, it is highlighted the high value of imports of pork fat. This product is used as raw material in the processing industries. In 2010, the imports of fat contributed in more than half of the value of derivate products, reaching US$ 3,6 millions. The first origin of these imports is Chile, representing 50% of total imports, followed by Denmark (23%). Other products of the processing industries imported by Uruguay are Shoulders and cut thereof of swine and ham, which together represent 16% of the total amount of imports. Likewise meat, Brazil is the main origin of these imports, being SADIA the company responsible.
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Table 7- Imports of the processing industries and derivates - Data in US$ and Tons
2008 US$ miles Pork Fats Shoulders and cut thereof Raw ham Hams and cuts thereof Total 3.635 854 807 751 6.048 Ton 2.928 464 96 291 3.780 2009 US$ miles 3.061 692 884 771 5.408 Ton 3.134 436 114 315 3.999 2010 US$ miles 3.633 936 990 717 6.276 Ton 5.872 552 122 296 6.841 2011 US$ miles 4.078 1.192 1.343 1185 7.798 Ton 3.413 535 131 391 4.470
Investment Since 2007, with the approval of Decree N 455, which regulates Chapter III of the Law of the Promotion and Protection of Investments (Law N 16.906), there have been approved a wide range of sector projects, totaling US$ 3.07 million. These investments are mainly concentrated in the industrialization and sale of pork products.
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EU 20%
China 50%
While pork is the most produced meat in the world, exceeding production of poultry meat (77 million tons) and beef (57 million tons), it is not the most widely traded. In 2010 the tonnage exported was 6 million and the tonnage imported was 5,8 million, implying that only 6% of the production was traded. Regarding exports, the United States is the largest exporter followed by the European Union, Canada and Brazil. It is estimated that by 2012, United States exports will rise and European Union exports will decline, reaching a volume of 2.3 million and 1.9 million tons respectively. Regarding imports, the major importers are Japan (19.3%), Russian Federation (14.8%), Mexico (10.1%) and South Korea (10%).
Millons of Tons
1,4
1,2 1,0
2011*
2012*
0,8
0,6 0,4 0,2 0,0
0,6
0,6 0,6
Source: Uruguay XXI based on data from USDA-FAS. Note (*): forecasted figures.
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Global Perspectives4
For 2014 it is expected a moderate growth, consumption, production and world trade in meat, resulting in a dynamic market. According to FAO's strong economic growth in developing countries in conjunction with consumer preference for foods with higher protein content will lead to increased consumption of meat. This growth will be driven by increased production of pork and poultry in developing countries.
Bovine meat
Pork
Poultry
Ovine meat
Source: FAO
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