He indicated that although, in general terms, 2022 was a positive year, The sector experienced difficulties at the end of the year during the validity of the two editions of the so-called “soybean dollar”by making the local price of derivatives used for the chicken feed in the local market.
“It made it difficult for us because collateral effects arose that had a very strong impact by not being able to divide the slates between the domestic market and the soybean dollar directed for exploitation. Consequently, we had a very difficult month there,” said the businessman.
As he specified, “a 2.9-kilo chicken consumes approximately 5.8 kilos of balanced feed and, of that, 1.6 kilos is soybeans, flour or soybean pellets.”
The alternative was – according to Domenech – to receive some type of compensation or to raise the price “between $18 and $20 per kilo of live chicken.”
Argentine Productive Strengthening Program
The same, which was announced last Thursday by the Minister of Economy, Sergio Massatogether with the Secretary of Agriculture, Juan Jose Bahillo, aims to offset the rise in the price of soybeans and its derivatives to poultry producers, along with pigs and eggs.
With an investment of $2,000 million, poultry producers will receive compensation of $30,000 per ton of soybeans or their equivalents purchased between November 28 and December 30.
To calculate how many tons will be compensated, the monthly average number of chickens sent to slaughter for each producer between October 2021 and September 2022 will be taken, and the tons necessary to produce that average monthly meat volume resulting from their past performance will be compensated. in a single payment.
This benefit, which will reach 100% of the producers, was praised by Domenech.
“Theoretically it is enough. We understand that there may be 15% to 20% more as a real cost, but we have to see why there are subsequent commitments,” said the head of the chain. that he indicated that there will be an audit on the one hand regarding “the amount of soybeans purchased”, and on the other, regarding the “sale prices”.
With a view to the coming months, he considered that “the concern is directly related to the weather and the drought” due to the supply that the chain needs of soybeans and corn, but he was confident because “there is a stock reserved for domestic consumption in the country.”
On the other hand, Domenech highlighted the growth of the sector, both in the internal and external markets.
“There was a sustained and very strong consumption, and we were able to provide a fluid supply,” he stressed, and indicated that there was a 1% growth in production in 2022.
He specified that consumption per inhabitant is “very high for chicken,” reaching 46 kilos per inhabitant per year, out of the “108 to 110” kilos that include poultry meat, pork, and beef.
Although the initial estimate of 270,000 tons was not met, it reached 257,000 tons, which allowed US$440 million to enter.
The businessman stressed that “in the last four months there was a 4% to 5% growth in exports compared to the same months of 2021”, and that there is a “very significant number” of exporting firms.
“Today we already have 19 companies with sustained flows. It is a growth of two to three companies per year, and we are consolidating as a production and sector”Domenech stressed.
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