The Organization for Economic Cooperation and Development predicts that Argentina will come out of the recession in 2021, which has been going on for the past three years. Experts are talking about a likely GDP growth of 3.5%.
The economy will grow in the country and the population will increase. These factors are driving the growth in demand for food. Since chicken is the most affordable meat, more and more people will buy it. Now in the structure of domestic consumption of poultry meat 70% are broiler carcasses. But in the future, there will be an increase in demand for semi-finished chicken products, nuggets, hamburgers and so on.
Along with this, the export potential of Argentina in this direction is decreasing. The poultry meat export tax is 9%. In addition, the profitability of poultry meat production is limited by high energy and labor costs, VAT payments. While exchange rate fluctuations were supposed to stimulate exports, they did not. According to the USDA report, Argentine poultry meat is losing its competitiveness compared to other producers in the region.
Information source - ukragroconsult.com
