Cattle and beef sector in Mercosurs countries

1
Cattle and beef sector in Mercosurs countries

• Ms. UBA. Hernán Palau
• School of Agronomy, UBA
• Argentina

2
Index of the presentation

• World meat beef consumption.
• Main markets and producers.
• Mercosur beef
• production and exports.
• trade barriers.
• SWOT analysis.
• RD sector.
• Argentina beef sector.
• Conclusions.

3
World meat consumption (Kg./Hab)

• () it represents 52 MM tons.
• Beef and ovine consumption decrease sanitary
  crisis, media, nutritional facts.
• Pork and chicken increased better promotion,
  lower costs.
• Avian flu gt ??????

4
World beef consumption

• Market conditionings
• Sanitary crisis BSE FMD.
• Two sanitary circuits free and non free of FMD.
• Changes of consumer demand
• Traceability, certification of origin, quality
  and safety.
• Protectionism and subsidies (EU, Korea, Japan and
  USA)
• Quotas.
• High positioning of Australia in SE Countries.

5
Main markets and producers
() it represents average 6.8 MM tons.
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Mercosur beef Production exports
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Mercosur beef main export markets

• Argentina
• EU (30, Germany 15), Russia (24), NAFTA (10)
  Asia lt 5. Exportsgt 23 of total production.
  FOB 1,700 US/Tn.
• Brazil
• EU (25, UK 11), Chile (12), Russia (10),
  Egypt (9) Asia 10. Exportsgt 20 of total
  production. FOB 1,600 US/Tn.
• Uruguay
• NAFTA (70), EU (10) Asia lt 5. Exportsgt 60
  of total production. FOB 1,800 US/Tn.

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Mercosur beef trade barriers
FOOT AND MOUTH DISEASE!!!!!!!!!
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Mercosur beef SWOT analysis

• Strengths
• Natural feeding, high quality breeding, free BSE,
  main producers and exporters, well known beef
  quality (sp. Argentina), great superficies.
• Weakness
• FMD free following by vaccination, big domestic
  market (price not quality), lack of coordination
  and information, small participation on the high
  value markets, low implementation of traceability
  programs, double standards.
• Opportunities
• New markets (USA Canada with BSE), avian flu,
  FMD free (opening of free FMD markets),
  valorization Mercosur beef (promotions tourism)
  .
• Threats
• New events of FMD, higher tariff barriers or
  protectionism, anti-exports domestic regulations
  (sp. in Argentina).

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Mercosur beef RD Sector

• Still developing. Many regions with low
  productivity (number of calves produced,
  Kg/Ha/year, genetic).
• Some top producers gt A.I., genetic experiences,
  supplementation with corn, pastures, feed-lot.
• Origin and quality assurance systems.
• Traceability, animal welfare, food safety, animal
  breed.
• The technology is available. Culture matters.
• Profits are not sufficient enough to increase the
  investments in tech and RD.

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Argentina beef sector

• Good and well known quality (path dependency).
• Great domestic market
• price not quality
• inflation
• evasion.
• Exports gt 20 of total production
• price vs. quality.
• Double standards (fiscal and sanitary).
• Uncertainty (FMD, Government regulations).

12
Origin quality assurance systems in Argentine
beef.

• Global consumer gt demands more quality (in a
  safety view)
• Argentinean exporters gt implement and certify
  these systems.
• Higher costs but higher prices.

• Examples
• Las Lilas, Carne Angus Certificada, Asociación
  Argentina de Hereford, PRINEX y EXAL, Consorcio
  Pampas del Salado, Carrefour, Jumbo, Norte, Disco
  (supermarkets).
• ARGENTINEAN EXTRA ADD VALUE

13
The origin the pampas argentinas and its
natural feeding
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Conclusions

• World beef production and demand is still
  important (BSE, FMD, other food crisis).
• Traditional countries (EU and USA) left the place
  to new world countries (Australia, Argentina,
  Brazil, Uruguay).
• Great tariff and sanitary barriers. Increased of
  costs of import.
• Big domestic markets in Mercosur countries.
  Informality Vs. Modernization. High price Vs.
  cheap beef.
• Origin and quality is very important to global
  consumer. Producers must adopted certification
  programs.

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THANK YOU Hernan Palau hpalau_at_agro.uba.ar