By the USDA's Agricultural Marketing Service - This is
a weekly report looking at international developments
concerning the poultry industry, this week looking at
Argentina's poultry sector, German Egg Producers and more Eggs
in China.
Argentina
Argentina
The future looks promising for Argentina's poultry sector.
Argentine poultry exports for 2005 are projected at a record
110,000 metric tons as a result of good profitability, new
market opportunities, good sanitary conditions, investments in
plant and equipment, and a stronger demand from existing
markets.
Argentina, a country free of Avian Influenza and
Newcastle Disease, has found markets in 34 countries as either
a complementary or alternative supplier to the world large
exporters. The quality of Argentine poultry products is
attributed to the country's natural resources, excellent feed
availability, modern processing plants, and the ability of its
local exporters to produce almost anything demanded. Argentina
is focusing on commodity type products as well as niche
markets for value-added products.
Total poultry meat exports in 2003 for Argentina were as
follows: whole broilers 36 percent, chicken paws 30 percent,
processed meat from layers 5 percent, and other products (i.e.
wings, nuggets, burgers, offal, breasts, etc.) 29 percent. The
FOB price in Argentina for frozen whole broilers was US $880
per ton in the first semester of 2004, 27 percent over 2003,
and is expected to continue increasing in 2005 as the world
recovers from the Asian Flu crisis.
Chile, forecsast to be Argentina's number one poultry
export market, is projected to increase its exports in 2005
equating to 20,000 tons of mostly frozen whole broilers.
Venezuela will be importing for the first time 5,000 tons of
large frozen broilers in the second semester of 2004 and
monthly shipments of about 2,000 tons in 2005.
Argentina also exports to China (chicken paws and
wings); Saudi Arabia (smaller frozen broilers); Europe
(processed poultry meat and IQF boneless breast); South Africa
(leg quarters, mechanically de-boned meat for further
processing, whole broilers); Japan (high value products
manually de-boned leg quarters and meat in cubes); and Russia
(surplus leg quarters). At present, Argentine processors would
like to see the Canadian and U.S. markets open, but their
sanitary services are currently going through risk assessment.
In July, Cuba indicated interest in Argentine imports and a
letter of intent for purchase of poultry and other products
was signed between officials from the Argentine Province of
Entre Rios and a Cuban state-owned import company.
Poultry imports for Argentina are projected to be 4,000
tons in 2005. Average imports were 45,000 tons between 1998
and 2001. In 2002, imports dropped significantly as the
devaluation of the peso made production costs in Argentina
become very similar to those of Brazil, which until then, had
encouraged inexpensive imports as Brazilian prices were very
low.
However, poultry imports from the U.S. will not be
benefitting from this projected increase in imports as poultry
products are still prohibited due to the past outbreak of
Newcastle Disease in California dating back to 2002. The two
governments continue to work at lifting the ban, though should
it be lifted and the market opened, the weak peso would limit
imports of poultry meat due to its higher price.
Argentine poultry production is forecast to be a record
1 million metric tons for 2005. The increase is attributed to
good profitability in the sector and excellent prospects in
both the local and external markets. The local poultry sector
increased almost two and a half times in the 1990's, but
suffered a forced reduction in production after the country's
economic crisis in 2002. Production finally started to recover
in 2003 and in 2004 it will be practically at the same level
as 2001, prior to the crisis.
Source: USDA FAS/Ag Exporter/Various News
Sources
Argentine Egg & Poultry Imports, Exports, &
Production 1998-2002 (MT)
Year
Import
Export
Production
Eggs
Poultry
Eggs
Poultry
Eggs
Poultry
1998
2,643
65,215
584
18,936
307,620
930,247
1999
1,477
55,608
70
17,097
318,870
982,860
2000
2,394
45,683
30
19,187
326,935
1,000,260
2001
2,686
26,661
469
21,243
301,916
993,122
2002
29
1,196
274
30,501
330,000
972,870
Source: FAO
German Egg Producers Losing
Money
German egg prices remain very low and
consumer demand is clearly weaker than last year.
Despite falling feed prices, producers are still unable
to cover their costs. The decline in prices below both
2002 and 2003 continued in June. At the beginning of
July, discount retailers were paying 20%-30% less than
at the same time in 2003. After remaining weak at the
beginning of July prices rose slightly in mid-month but
this trend did not continue. However, prices are not
expected to weaken further.
Source: International Egg Commission
More Eggs in China
Egg production in China totalled 26.1
million tons (mt) in 2003. Hen egg production amounted
to 22.33 mt, which was a little over a million tons (5%)
more than a year earlier. Output of other eggs amounted
to 3.83 mt compared with 3.72 mt in 2002. The combined
output of just 10 provinces, Shandong, Hebei, Henan,
Jiangsu, Liaoning, Sichuan, Anhui, Hubei, Heilongjiang,
and Jilin (each producing more than 900,000 tons),
accounted for almost 80% of total poultry egg production
last year.
Source: International Egg
Commission/China's National Statistical Bureau
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