The poultry industry in Latin America has a future of continuous growth, not only in chicken and egg production but in the consumption of poultry products. However, this growth will be marked by changes in consumption and business consolidation.
This was the conclusion of four senior poultry executives discussing the future of the Latin American poultry industry during a panel at the second Latin American Poultry Summit, which is part of the 2020 International Production & Processing Expo (IPPE), in Atlanta, Georgia.
“In five years, I see the industry growing continuously, with greater consumptions per capita, much more specifically in the egg sector,” said Juan Felipe Montoya, president of Incubadora Santander, the largest egg-producing company in Colombia under the brand Huevos Kikes and one of the 10 largest companies in the region in this sector.
According to Montoya, eggs have the advantage of meeting the needs of consumers who want fresh and natural products. However, the companies are responsible for doing business “in the right way,” seeking to improve efficiency, sustainability and transparency before consumers. “If we are wrong, credibility will be affected. That makes the consumer look for another protein,” he said.
ASF gives an additional boost to poultry industry
For Pilar Zubizarreta, director of Pollpar — the second largest chicken company in Paraguay — the crisis caused by African swine fever (ASF) in China, which has ended with a large portion of the Chinese herd being culled, gives a greater boost to the global poultry industry.
“[After ASF] by inertia, I think we will have a good five years. Chicken itself is a very fine protein that is produced very fast and at a very good price. It has the conditions to continue growing,” Zubizarreta said during the panel.
The entrepreneur agreed with Montoya that corporate responsibility is also important in this growth process. It is not only about animal welfare and sustainability, but about giving importance to other trends that indicate where consumer concerns are directed.
There will be more consolidation in the future
Looking ahead, the Latin American poultry industry will continue to consolidate, reducing the number of competitors in the sector, said Carlos Ikeda, director of San Fernando S.A., the largest chicken company in Peru.
Xavier Vargas, president of Cargill Protein Latin America, which has presence in Guatemala, Honduras, Nicaragua, Costa Rica and Colombia, concurred with Ikeda. “Chicken and egg consumption will continue to grow in Latin America. The industry will continue to consolidate. There will be less players and it will integrate vertically,” said Vargas.
Although he said it is increasingly difficult to predict the future, the president of Cargill Protein Latin America emphasized the importance of maintaining an adequate staff that adapts to the industry changes and of meeting the consumers’ needs, including those that follow the new consumer trends with value-added products and other diets.
“The consumer is the one who will guide those changes,” Ikeda said.
Both Cargill Protein Latin America and San Fernando are in the top 10 chicken companies in the region.
The Latin American Poultry Summit is held on January 27 and 28 in Atlanta and has an extensive educational program for its attendees, ranging from feed to chicken and egg production, and new poultry trends.
