According to a published report, complicated prospects are expected for the meat supply chain for next year due to the fact that there would be less exportable supply. This scenario will not improve even with the accompaniment of a favorable climate, they indicated.
The Rosario Stock Exchange in Argentina unveiled a report based on US Department of Agriculture (USDA) projections and detailed that lower exportable supply is expected for several Southern Common Market (Mercosur) countries.
The material indicates that Brazil would be the only member country of the bloc that would show growth in terms of remaining meat, but with a rather low percentage, equal to 1%. They detail that by 2023, Argentina will experience a decline of close to 3%, while Uruguay and Paraguay will experience declines of 6% and 10%, respectively.
These estimates show that our country would be the one that would record the greatest drop in terms of exportable supply in a complicated scenario for the entire sector. In the report, they also mentioned that the high slaughter levels recorded in the region in recent years are adding to a new cycle of droughts, which is aggravating the situation.
According to the Campo newspaper, there is also a limitation to maintain the farm in a large part of the region and a high food cost, therefore, that the works will be carried out with a limited supply of cereals during the first half of next year.
In the report they also underline that not even favorable climate change could help to increase supply immediately in all the countries of the bloc.
They added that any reallocation of fields could encourage even more farm retention to adjust available supply in the short term. In short, the Department of Agriculture expects 2023 to take place in the midst of lower available supply and slower world economies, therefore, in this context, it will be necessary to interact to find a new price equilibrium for the coming cycles. .
2022 has not been a good year for the meat industry. The director general of the Paraguayan Meat Chamber (CPC), Daniel Burt, told La Nación/Nación Media that this 2022 they plan to walk towards a post-covid-19 recovery, but that after the political issues in Russia and Chile, our main markets, which has been delayed.
“This has generated many inconveniences in terms of exports; we have also witnessed a downward trend in international export prices, marked above all by China; So from that standpoint, this year has been tricky.
But despite the difficult situation with which the year ended, the sector is celebrating the culmination of the authorization process for the US market, which is already in the final phase, since the phases of audits, visits to our country and exchange of documents are been completed finalized. In this context, Burt also highlighted the completion of the Canadian audit in the country for the entry of Paraguayan meat into its market.