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More financing opportunities for pork and chicken chains in Argentina

Christian Fernsby |
The Ministry of Agriculture, Livestock and Fisheries of the Nation highlights the strategic role of pork and chicken production in the country, as dynamic chains of regional economies.

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The national agricultural portfolio, and in coordination with other areas of the National Government and the Provinces, has been working to promote the development of both sectors throughout the territory.

In this direction, the decision to expand the financing line to increase the production of pork and chicken is registered, announced last week by the Central Bank of the Argentine Republic (BCRA).

"It is strategic for the country that we can put financial tools at the service of production and our regional economies. In such a way that they allow us to continue increasing our agro-industrial production, ensuring domestic supply and the growth of our exports," said Minister Luis Basterra.

For his part, the president of the Central Bank, Miguel Pesce highlighted: "the administration of the monetary, exchange and financial policy is destined to generate the conditions so that the private sector can make investments in the productive sectors. Expanding meat production has the double effect of improving domestic supply and generating foreign exchange, either by substituting imports or by releasing greater surplus meat for export. "

The BCRA Board of Directors decided to expand the line of "Financing investment projects" with a 30% discount rate to all companies, regardless of their size, that make investments aimed at increasing the productive capacity of chicken and / or pork meat.

"The line can now be used, regardless of the size of the company, to increase the supply of poultry and pork, considered substitutes for beef. These sectors have a potential margin to increase their production and contribute both to the diversification of the basket of meat consumption as well as the increase in net exports ", it was reported from the bank.

"The development of both chains has a dynamic impact on our regional economies, they generate work and roots. With that premise we work together with the provinces, and that is why we enthusiastically receive measures such as those announced by the Central Bank," he added Basterra.

"The production of intensive meats, such as pork and chicken, are strategic for adding value in the territory, transforming our grains into meats and federal development through the generation of quality private employment," emphasized the Undersecretary of Livestock and Production Animal, José María Romero.

It is worth noting that chicken consumption increased during the last 20 years, going from 26.6 kg / capita / year (2000) to 41.4 kg / capita / year (2010) and 46 kg / capita / year (2020), as As a result of sustained consumption in the local market, which takes advantage of access to a high quality protein at a very affordable price.

It has become a fundamental component in the Argentine meat basket, with a consumption very close to that of bovine meat.

As for the pig sector, according to data from the Directorate of Swine, Poultry and Farm Animals of the national agricultural portfolio, the pig trade balance was positive again in 2020, both in volume and in monetary terms. The trade surplus was US $ 4.03 million, while in 2019 there was a trade deficit of US $ 47.3 million.

Likewise, pork exports reached US $ 62.12 million last year, which represents an increase of 74% compared to 2019. On the other hand, imports fell by 30% to US $ 58.09 million.

In volume, the country exported 34,704 tons of product weight, an increase of 65% compared to 2019, while the volume of imports was 20,142 tons (-36%).

"Both meats are the central axes for the change of our agro-production and agro-export matrix for a federal development, inclusive and with greater opportunities," Romero explained.

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