To mark the 60th anniversary of sister publication Industria Avícola, editor Benjamín Ruiz sought the opinion of key industry players throughout Latin America. The region has witnessed a period of strong sustained growth, but how do these industry leaders see the future developing? What is their vision of the future for Latin American poultry production?
Argentina
By Roberto Domenech, president of the Centro de Empresas Procesadoras Avícolas
The Argentinian poultry industry -- looking at exports
Commercial poultry production, which started 54 years ago, has experienced the strongest and most sustained growth in its history over the last decade.
Naturally, Argentina is a country where animal protein is readily available, and this protein primarily has been beef. The country has also been a global player in the production and trade of wheat and maize. If we look at the last 25 years, soya has been added to the list, a crop that taken some share from beef production.
Poultry production needed to fight for its place on the home market, competing against cereal exporters for maize and against the beef sector, which consumed what was not exported. In this scenario, poultry consumption stood at less than 20 kg per capita per annum in 2002.
However, marcoeconomic policies that favored development and investment, an increase in maize production, a plentiful supply of soya and a lack of growth in the beef sector resulted in the chance for the sector to really take off after 40 years. Having invested in modern equipment, we could now win market share at home and supply international markets. Slaughterhouses reached international standards and production grew from 740,000 tons in 2002 to 2,063,000 in 2012.
On the home market, annual consumption of poultry meat rose from 20 kg to 43 kg, and exports grew to 300,000, with a value of US$540 million.
Per capita annual meat consumption in Argentina stands at 109 kg, of which 58 kg are beef, 42 kg are chicken and 9 kg are pork. Our vision for the future is that on the home market, there can be no overall growth in meat consumption: If poultry consumption grows, it will be to the detriment of other meats and vice versa.
Consequently, any growth in production will have to be destined for export.
Our industry has a growth plan to 2017 with a target of 2.5 million tons of production (+5 percent per annum), with consumption rising to 45 kg per capita and exports reaching 500,000 tons per annum.
Argentinian poultry meat is now exported into 70 markets, the main ones being Venezuela, China, South Africa, Chile, Angola and the Middle East. In almost all of these, our share is small, and this is why the greatest growth will only occur if we can increase sales to these markets.
In regards to investment, we are building farms with totally controlled environments. Slaughterhouses from which product is exported are developing new plants that can follow specific slaughter practices in line with the needs of the particular export market.
Investment, efficiency, productivity, biosecurity and strong public-private partnerships are the foundations on which a successful future will be built.
Brazil
By Francisco Turra, president of the União Brasileira de Avicultura (Ubabef)
Brazilian poultry production: Greater profitability, stable production
World leadership doesn't happen by accident. In the case of Brazilian poultry production, it is the result of decades of work, allowing the country to consolidate its position as the world leader in poultry exports.
In 2012, the Brazilian poultry industry generated US$8.326 million, dispatching 4.138 million tons of product. In the first half of 2013, poultry shipments reached 1.890 million tons. This volume may be comparatively smaller than that shipped in the same period last year (-4.9 percent). By value, however, exports recorded a growth rate of 7.2 percent, with a value of US$4.093 million.
Obviously, this income growth from lower volumes is not the result of a sudden change in the type of product shipped to the 150 markets that Brazil sells to. Parts continue to be the main export item, followed by whole birds (together accounting for almost 90 percent of income over the first six months). We have seen that there has been a delayed recovery from the impact of the 2012 crisis, which was made worse in Brazil by the reduction in soya production, and which resulted in a 100 percent increase in soybean meal costs.
This situation is not going to change greatly in the short term. Brazil has a strategy to produce in response to demand. In 2013, Ubabef calculates that, with current production levels and broiler and breeder stock numbers, production will be 12.3-12.5 million tons, a similar volume to 2012's 12.6 million. As far as exports are concerned, there is a tendency for shipments to increase during the second half, which will result in the same or even greater total volumes than 2012's 3.9 million tons.
From the point of view of an upturn in profitability, the outlook is favorable. While exports recover their rhythm with an increase in income, the home market will come under pressure with the traditional increase in consumption between July and December, due to the year-end celebrations.
But it is not simply by responding to demand that the Brazilian poultry industry aims to increase its profitability. The focus will now fall on a new strategy: adding value to production. The idea is to adopt new processes and invest in research and development that will make products more attractive without great increases in production.
The Brazilian industry is already working very hard in this respect, particularly with the adaptation of products to client needs, for example halal certified chicken for the Middle East or kakugiri for the Japanese market.
However, there is still a lot to do. Our aim is to respond to the demand that is expected over the coming years, especially in emerging markets such as our own home market and other countries that are already clients, such as China and countries in Asia and Africa, as well as the new markets that are opening up.
The Brazilian poultry sector already has a strong position in the international market, because of its quality standards (a result of the rigid processing controls and the use of superior quality inputs that guarantee quality, such as maize and soya compound feed) and health (Brazil is one of the few large producers and exporters in the world to have not registered an outbreak of avian influenza within its borders). In addition, there is also the sustainable approach to production that the industry has adopted (distant from the Amazon and in accordance with national and international environmental legislation).
Now, we are looking for new opportunities that will allow us to complement what is currently demanded, which will improve the financial results of the exports without causing problems for producers in importing countries.
There are various indicators that have shown us the route that we will probably take to grow further processed product exports. The suitability of products, such as the ability to respond to the consumer needs in terms of quality, safety and the environment, will guide the direction of production and exports for the Brazilian poultry sector.
Colombia
By Andrés Moncada, former executive president of the Federación Nacional de Avicultores
Colombia: The best food for a better country
In 2012, the Colombian poultry industry grew by 2 percent, compared with 3.8 percent in 2011. The expectation for 2013 suggests growth of close to 3 percent for the industry as a whole, with egg production increasing by 4.8 percent and poultry meat up by 1.8 percent.
Over recent years, poultry production has been constantly growing. Since the 1980s, production capacity has increased six-fold, rising from 265,193 tons in 1980 to 1,748,604 tons in 2012.
This means that poultry production is the second most important agricultural activity in the country after beef production. Rapid growth in the sector over the last decade has resulted in poultry meat and egg production doubling.
As far as poultry meat production is concerned, over the last 12 years, production has almost doubled from 562,744 tons in 2000 to 1,112,260 tons in 2012. The regions of Cundinamarca, Santander and Valle del Cauca are the main areas where the industry is concentrated. However, it's worth noting that it has also been growing in other areas of the country.
In 2012, egg production stood at 10,000 million units. According to our forecasts, in 2013, egg production will reach a record level of 10,900 million eggs.
There is no reason to suspect that the continuous growth achieved by Colombia's poultry industry over the last 15 years should falter, and we expect it to continue. Fenavi believes that there are five factors that underpin this growth:
- The industry has acted with due care and attention: investments have been made, technology has been adopted and gains in productivity have been achieved to the point where feed conversion levels are the same of those for leading countries, be it for meat or eggs.
- The country is aligning its sanitary regulations to be able to export, given that the best defense against international competition is to enter overseas markets.
- Consumer education campaigns have highlighted the qualities that make our meat and eggs unique. In addition to a presence in the traditional and social media, we have also demonstrated various recipes with consumers face to face; we have trained health professionals; and we are forging agreements with public/private entities.
- Together with government bodies, we have drawn up an internationalization plan that identifies our priority markets together with a route map for each one. Among the most important areas are North Africa, the Middle East and Asia Pacific.
- The Colombian economy is growing by 4 percent per annum (above the world average) and in Latin America, only beaten by Peru, Chile and Panama.
Our challenge: The poultry industry is a fundamental element of Colombia's food supply. It produces the largest amount of protein of the best quality at the lowest cost to the consumer.
Data shows that by the year 2050, there will be some 9,000 million people to feed, and with this comes the promise from those that work in the food industry to supply more.
According to the FAO, more than 800 million people do not have enough to eat, and most of them live in developing countries.
To reach this goal, we need genuine projects with innovation that will allow us to achieve sustainable food security, and this is the path that Colombian poultry production will follow.
Mexico
By Sergio Chávez, executive president of the Unión Nacional de Avicultores
The vision of the Mexican poultry producer: Avision 12-24
Having overcome the incursion of highly pathogenic avian influenza H7N3, the Mexican poultry industry is now seen by the government as a strategic industry that must be carefully cultivated.
The negative consequences of the H7N3 virus in one year alone -- not only for the poultry industry but also for the government's economic plan -- resulted in politicians and policy makers activating "emergency plans," to ensure that poultry products, be they meat or eggs, reached the consumer at a low price.
This health emergency resulted in a constant and permanent dialog with the highest authorities in the land. A positive outcome of this, however, has been that now, they better understand our industry and the important role that it plays in the socio-economy of the country.
Despite the above, the government's measures to keep inflation low at any cost led to the doors being opened to imports of meat and eggs from countries with which Mexico does not have trade agreements.
For poultry producers, these decisions have been far from optimal, because in the long term, they put the future of the national egg and chicken meat industries at risk when the Mexican producer aims to produce food for the Mexican consumer that covers his or her nutritional basic needs.
Over the passage of time, the Mexican producer has repeatedly demonstrated his strength and maturity to carry on, and these health issues in 2012 and 2013 will not prove to be an exception.
Once these problems have been overcome, the industry development plan will continue apace. We call it Avision 2012-24, and it is made up of seven key commitments to:
- Human health: from farm to fork
- Productivity: reducing production costs
- Modernization: the development of high added value food products
- Sustainability: protecting the environment
- Exports: entry into and development of new markets
- Health: health and protection protocols
- Finance for growth
Mexico's poultry producers are secure and confident that they will soon overcome the crisis. We emphasize that vaccination against H7N3 has proved effective; the repopulation of flocks slaughtered in 2012 and those culled due to the small 2013 outbreaks is now complete; the data demonstrate that given this repopulation, the industry continues to grow as much in egg production (6.7 percent) as in broiler production (1.5 percent); and the desire to enter into export markets remains strong.
Peru
By José Vera Vargas, president of the Asociación Peruana de Avicultura
Working toward a world-class Peruvian poultry production
The Asociación Peruana de Avicultura celebrates its 75th anniversary this year. Since its establishment, the association has proactively worked to develop the sector's competitiveness to provide healthy, nutritious and affordable food, and to be one of the main suppliers of protein to our citizens.
We can now say that this aim has been met. Of all the protein consumed in Peru, 56 percent comes from poultry. Similarly, with per capita poultry meat consumption of 39 kg per year and with a sector that continues to grow and has close to 583 million birds, we are one of the 20 largest poultry producers in the world.
The significant share of the national diet that has been gained by poultry meat demonstrates that the role played by the poultry industry is fundamental. It is irreplaceable for the healthy growth of the population, from the youngest members to adults, and this is important for the development of the country.
It is in this role that all the players in the poultry production chain are focused: from the role we play in our companies to the association as a place to work together on issues to our contact with the government, in public/private partnerships, with the aim of the common good and working in confidence. We strongly believe in this way of working.
In the context of a globalized world with the country growing sustainably, the poultry sector is faced with greater challenges in achieving a world-class industry that delivers the very best products to Peru and the world. Because of this, we recommit to the promise that we took on 75 years ago to continue in the role that each of the players in the production chain has actions and principles that benefit the health, nutrition and well-being of the population.
