Meat Processing Industry Concentration and Foreignization in Argentina: 2023 Statistics and Trends

Out of a total slaughter that in 2023 was 14.5 million heads, the ten largest meat processing companies killed about 3.4 million heads in 23 plants, or 23.4% of the total slaughter, showing a much lower degree of concentration than that presented by the refrigeration industry in the United States, Brazil or Uruguay.

It can also be estimated that the 30 “exporting” companies, or rather predominantly exporters, in some 40 plants they own, totaled a slaughter of 6.3 million head in 2023, 43% of the national slaughter. Taking an average slaughter weight of 245 kilos per head, the participation of export plants in the volume (measured in kilos on hook) produced by the country would amount to 47%. Of this volume, it can be estimated that 75% of what is slaughtered by the “export” plants is destined abroad and the remaining 25% is placed in the local market.

Regarding the degree of foreignization of the meat processing industry, which is so high in Uruguay, the United States and Paraguay, in Argentina there are only 6 “predominantly exporting” plants owned by foreign capital, with a slaughter of 967 thousand heads per year in 2023. , only 6.7% of the national total.

Concentration and foreignization

In the United States, 80% of fat cattle slaughter is concentrated in just four companies, of which two are Brazilian and the other two are Chinese-owned. In Uruguay, if the operation between Minerva and Marfrig is confirmed, subject to the Competition Commission, the first of these companies could concentrate up to 50% of the total work. In Paraguay, Minerva kills 40% of the total, and together with another Brazilian group (Concepción) they carry out 60% of the country’s slaughter.

In our country, of the 460 “slaughter establishments” registered by Ruca, about 170 have Senasa authorization and kill 84% of the total (data from 2022). A decade ago, the slaughter of meat processing plants with Senasa authorization comprised 80-82% of the total slaughter in the country.

It should be noted that in 2007 the 10 largest meat processing companies, in 35 plants, slaughtered 4.2 million heads annually. In 2015, the top 10 companies killed 3.1 million, 22% of the national total and in 33 plants. In 2023, the 10 largest companies killed 3.4 million head, 23.4% of the total, in 23 plants.

How was the export refrigeration industry able to increase shipments from the average 200 thousand tons in the years 2012-2016 to the average 900 thousand tons in the period 2020-2023?

Several closed plants were reopened and strong investments were made to increase slaughter capacity and refrigeration capacity in most of the export industry, both with national and foreign capital. In addition, many plants specialized in domestic consumption – especially in Greater Buenos Aires – made the necessary investments to obtain authorization to export, (especially to China) and today provide the slaughtering and stripping service for users, the so-called “factoryless exporters.” ”. This process of investments, increase in installed capacity and reopening of plants, determines that there is currently a considerable degree of idle capacity in the refrigeration industry.

The process of reopening plants and increasing work capacity continues to this day. In industrial circles, it is considered that the installed capacity of the industry as a whole (consumption and export) is today 16 million head annually, against a slaughter of 14.5 million observed in 2023 and a slaughter forecast for 2024 of 13.5-13. .7 million heads.

2024-02-17 03:01:00
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