Page 40 - Minerva Foods | Annual Report 2017

Paraguay – In 2017, in line with growth of the Gross Domestic Product (GDP) of Paraguay, estimated at 4.3% by the Paraguayan Central Bank, the beef market ended the year with positive results. Domestic consumption rose to 25.5kg per inhabitant, 3.6% higher than in 2016, according to data from the Organization for Economic Co-operation and Development (OECD-FAO). With 2.1 million head of cattle slaughtered during the year, the country had a volume of 6% higher than in 2016. This result was driven mostly by exports. The average price was up by 9%, reaching US$165.80/100 kg. Exports saw growth starting in the second semester, ending the year at 286,000 tons, 3% more than in 2016, and with revenues of US$1.2 billion, rising 11% than the previous year. Chile led in purchases, with 37% of total volume shipped, followed by Russia and Brazil, accounting for 21% and 9% of total exports, re- spectively. Paraguay also had a year marked by access to new markets, health certification of its entire herd by Chile and approval by the United States Department of Agriculture (USDA) for beef imports from the country.
The USDA estimates that around 241,000 tons could be consumed domestically in 2018, ex- ceeding the amount consumed in 2017 by near- ly 9,000 tons. According to the organization, in recent years there has been a notable increase in the supply of the brand’s meat, a wide ac- ceptance of packaged cuts and easy sales in the
capital and other large cities, at the same time demand for more expensive cuts has risen at supermarkets, restaurants and butcher shops.
Uruguay – Uruguayan meatpackers slaughtered 2.3 million head of cattle in 2017, a volume 3% higher than in 2016. The average cattle price for the year reached US$165.70/100 kg, practically unchanged when compared to the previous year. The export volume in Uruguay reached 313,200 tons and was up by 4% compared to the previ- ous year. Export revenue totaled US$1.6 billion in 2017, with over 50% of shipments going to China and the USA.
Argentina – In 2017, the country experienced a panorama of improvement in key livestock indi- cators. There were 2.8 million tons of beef pro- duced, approximately 8% more than in 2016, with 90% going to domestic consumption. Slaughter volume increased by 8% in relation to the previ- ous year, totaling 12.8 million head, which is ev- idence of the country’s recovering industry. The average cattle price was practically unchanged, at US$192.40/100 kg. The growth in volume of slaughtered meat, in contrast to the stability of the average price of the raw material, indicates the beginning of greater availability of animals ready for slaughter, as a result of the process of recom- position of the Argentine livestock in recent years.
40