Argentina decided to become a major exporter of pigs

Argentina is moving forward to strengthen its position as a major player in the "World Championship" for pig farmers. As in football, the country is vying with Brazil in South America to win the global preference for its pork.

Over the past 2 decades, the numbers have been outstanding. Between 2002 and 2021, Argentine pig production has shown growth rates above 8% per year, making this sector the most dynamic in the country's economy since 2011.

Argentina has area, grain and experience

According to the official data of the Ministry of Agriculture, Livestock and Fisheries, the national pork production in 2021 was 694,880 tons, which is 6% higher than in 2020 (655,382 tons), or 410.9% more than in 2002 . 

The EXPORT of Argentine pigs is also developing, but not without some setbacks. Since 2015, the country has steadily increased its export volumes and reached 41,345 tons in 2020 (397.1% more than in 2015). However, 2021 brought an unexpected surprise.

In 2021, export volumes grew monthly until June, then fell sharply by 67% in July and remained at the same level until the end of the year. So, last year Argentina exported 30,121 tons, which is 27.1% less than in 2020. The main reason for the decline, market experts called CHINA - the country responsible for 67% of demand, has reduced purchases.

Pig farming partnership with China

In any case, despite this isolated situation, the Asian giant seems to be a strategic partner for Argentina in terms of pigs, not only as a buyer, but also as an investor.

China and Argentina have signed a $3.8 billion project to double the South American country's pork production by 2024. The agreement includes 25 integrated farms of 12,000 sows each, each valued at $151 million.

The project includes feed production plants, bioreactors, full-cycle breeding plants, export licensed slaughterhouses, wastewater-free processing, and customs posts. The plans not only generated enthusiasm, but also drew criticism from Argentine activists.

Pig Strategic Plan 2030

In fact, Argentina has a plan to make the country one of the world's top pork suppliers by 2030. Last April, the sector presented its strategic plan for 2020-2030 to the national government at the Argentine Agro-Industrial Council.

By 2030, they predict annual growth rates for various aspects:

6% by number of sows (target 700,000 sows)

5% increase in MEAT production in kg per sow per year (3000 kg)

11% in produced tons (2.1 million tons)

7% of domestic consumption (1.3 Mt)

31% in exports (800,000 tons)

6% in per capita consumption (30 kg)

Domestic pork market

Despite looking to the east, the domestic market represents another huge opportunity for Argentine pig farmers. Average per capita consumption jumped from 4.98 kg in 2002 to 15.9 kg last year, i.e. by 219.2%.

it is worth noting that the level of consumption was also provided by imports, which increased by 85.6% from 22,497 to 41,744 tons in 2021. In other words, it can be said that Argentine production was not enough to meet domestic demand last year.