Stock effect: in September, the exporting cold stores had the worst average daily slaughter since February 2019

Due to the sharp drop in meat processing activity, due to the export stocks that the Government recently relaxed, the average daily slaughter of cattle in September was the worst since February 2019, according to the Argentine Meat Exporters Consortium (ABC).

The President of the Consortium, Mario Ravettino, indicated that the average was the lowest because it was a month with the greatest number of business days, which denotes “the serious fall that the activity in the slaughtering plants experienced”.

A) Yes, 1.09 million head were reached, 4% less than in August, although the decrease reaches 9% when its daily average is considered. In the first 9 months of this year, 9.6 million animals were slaughtered, 7% lower, some 703 thousand heads, than in the same period of 2020, according to data provided by the National Directorate of Agricultural Commercial Control (DNCCA) and cited by ABC.

In addition, It was the worst September since 2017 with a 10% drop in the year-on-year comparison. “In the last twelve months, 13.3 million heads have been slaughtered, 6% less than in the same period closed in September 2020, despite the incidence of the high figures of the second half of last year,” the study specified.

Likewise, Ravettino asserted that, compared to the average of the second half of last year, the decrease is 16% and the annualized daily average reduces slaughter to just 13 million heads, one million less than in 2020. “The evolution of recent months has accentuated the downward trend that had been verified,” he explained.

The ABC Consortium detailed the average daily work for each month, from 2017 to 2021.
The ABC Consortium detailed the average daily work for each month, from 2017 to 2021.

However, the survey indicated that “the measures that limited exports have increased per capita consumption above 50 kilos, since last June ”.

Meanwhile, during 2020, 3.8 million heads were slaughtered in the establishments associated with the ABC Consortium, 500 thousand cattle less than the previous year, which implied a reduction in the Consortium’s participation to 27% of the total slaughter, 4 % less than in 2019.

“This behavior, which had stabilized, was accentuated last May, in which the participation fell to only 25%, to increase thereafter, which recovered, observing a slight decrease in the month mentioned in which they represented the 28 %. The associated companies have proportionally reduced their work more than the rest of the refrigeration establishments between January and September 2021 ″, described Ravettino.

Job details

On the other hand, ABC specified that, since April, the DNCCA discontinued the publication of slaughter statistics discriminated by establishment and user, reporting them separately. “The data aggregated according to registration reveals its concentration in the figure of Matarife Abastecedor, within which are also the refrigeration establishments,” said the report.

As reported by the DNCCA, they could be identified 27 establishments operated by cooperatives, which kept 5% of the national work. Of these, 8 are located in Buenos Aires, where their participation tended to increase in recent months, reaching 6% of the provincial total, with a strong concentration in the two most important (Máximo Paz and SUBPGA). “The available data allow us to determine that they practically do not carry out their own work, but it is not possible to confirm who operates within their plants”, indicated ABC.

“In September 2021, female participation fell to 43%. Likewise, a lower incidence of the oldest ones was evident, which in recent months, coinciding with the application of restrictions on exports of bovine meat, have fallen significantly with respect to the level previously reached ”, added the private report.

He also pointed out that “the shortage of light animals, a factor that contributed to putting pressure on farm prices, has lessened in the last two months.”

the figure of Matarife Abastecedor, which also includes the refrigerators, took almost 97% of the work due to enrollment.  (Source: ABC Consortium)
the figure of Matarife Abastecedor, which also includes the refrigerators, took almost 97% of the work due to enrollment. (Source: ABC Consortium)

In the first eight months of 2021, the typified slaughter reached 5.2 million heads, approximately 60% of the national total reported by the National Directorate of Agricultural Commercial Control. The task typified by Conformation is broken down by classification and dentition according to the criteria established by SAG Resolution No. 32/2018. Between January and August of this year, 638 thousand cows were classified as D and E, a category that was recently opened for export to China in about 140 thousand head until the end of the year.

The average weight of slaughtered cattle As of July of this year, the last period reported to date, it was calculated at 208 kilos for females and 245 kilos for males. “The improvement of both has been reflected in the total average weight that reached 234 kilos per head, a record considering our recent history. The conjunction of a lower contribution of bellies and young animals has been reflected in this trend “, remarked the private work.

The period from January to September 2021 was affected by the presence of the export lock.  (Source: ABC Consortium)
The period from January to September 2021 was affected by the presence of the export lock. (Source: ABC Consortium)

Finally, it was reported that, during the first 9 months of this year, the beef production “was slightly higher” at 2.2 thousand tonnes of beef, which represented a decrease of 5% year-on-year. “The increase in the average weight of the slaughtered animals has cushioned the fall in slaughter,” they evaluated from ABC.

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