February 24, 2006

 

Argentina's 2005 poultry exports hit ten-year high of US$99 million

 

 

Argentina's poultry exports totalled US$99 million in 2005, a 10-year high, the animal and plant inspection agency, Senasa, reported Thursday (Feb 23).

 

That puts revenue from fresh and processed poultry export up 81 percent from US$55 million in 2004.

 

The volume of exports totalled 75,819 tonnes, up 76 percent from 42,845 tonnes the previous year.

 

China, Russia, South Africa and Saudi Arabia were the top buyers of fresh poultry, while Germany and the Netherlands were the leading importers of processed poultry.

 

Though Argentina is a small player in the international poultry business, the country's poultry industry is growing quickly thanks to increased demand from here and abroad.

 

Argentina is expected to produce a record 1.18 million tonnes of poultry in 2006, according to the US Department of Agriculture's Foreign Agriculture Service.

 

Domestic consumption will account for one million tonnes while exports will total 150,000 tonnes.

 

"This is a result of good profitability in the sector, very competitive broiler prices in the domestic market, and the opening of many new markets worldwide which look upon Argentina as an alternative supplier," the FAS reported.

 

The Argentine Poultry Processors Business Center, or CEPA, says exports could rise to 500,000 tonnes by 2010.

 

Rising exports have led companies here to invest more than US$60 million in housing, processing facilities, grain storage capacity and feed mills, among other things, over the past year, the FAS has reported.

 

Argentina has some competitive advantages over other exporters, including lower production, labour and energy costs.

 

Moreover, a lot of Argentina's high-quality corn feed is grown near poultry production regions, meaning producers often do not have to pay transportation fees to get feed.