Ricardo Negri Secretary of Agriculture, Livestock and Fisheries The Argentine Republic MICA’s 55 th Annual Meeting and Conference San Francisco, California September 28th
ARGENTINA AMONG THE BIGGEST PLAYERS IN THE GLOBAL MARKET EXPORTS: WORLD RANKING • Soy oil & meal • Lemon juice 1st • Peanut oil • Pears • Corn • Honey 2nd/ • Yerba mate • Dry beans Agroindustry represents >60% 3rd • Sunflower oil of total exports • Grape juice USD$ 35 billion exported to • Garlic 4th/ • Prunes 180 destinations • Peanuts 5th • Canned olives
Changes since December 10 th , 2015 AGRICULTURE, AGROINDUSTRY LIVESTOCK AND FISHERIES • Agriculture = enemy • Agroindustry in the agenda • Policies limited growth • Engine of economic growth • Arbitrary decision making • Open dialogue and cooperation • Export tariffs • Removed and reduced tariffs • Quantitative export restrictions • Export restrictions eliminated • Isolated from the world • Integrated into the world • Generated conflicts • Historic conflicts solved • Limited interaction • Public-Public and Public-Private • Public policy based on biased interaction • Public policy based on national ideology interests and goals • Arbitrary allocation of subsidies • Replace subsidies with credit
Argentina’s Production Potential - 2015 → 2020 +50% +15% (100 150 million tons) (5.2 6 million tons) +80% +20% (12.2 22 million tons) (11.5 14 billion liters) +2% per year Fruits and Vegetables → Food and Beverages US$ 1 billion in exports industry growth Enhanced monitoring and transparency
Argentina Beef Production
Agroindustrial Policy Increase Simplify rules and competitiveness and tax regulations transparency in the domestic market Enhance transportation system
Agroindustrial Policy Our goals Increase market Simplify export Promote bilateral access requirements negotiations
Livestock sector of Argentina Soil variety + Climate = Optimal conditions for cattle farming Sanitary status “Negligible risk” by OIE for BSE/Mad Cow Disease Free of Foot & Mouth Disease with vaccination Additionally: Free of Classical Swine Fever Free of Porcine Reproductive and Respiratory Syndrome Free of Newcastle Disease ► Complies with EU health standards Additional attributes (cultural, social, tradition) strengthen the integration of products and promote their position. World class brand
Slaughter, Consumption and Expor ts 3.60 Slaughter Pessimistic Intermediate Optimistic 3.40 3.20 3.00 2.80 450 250 2.60 325 250 200 2.40 200 200 2.20 Ton CWE/year 2.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Bovine Cattle 52,600,000 Head 250,000 Farmers 502 90 Slaughterhouses and Open markets for processing plants fresh beef
Cattle Stock Historical Pessimistic Intermediate Optimistic 61 59 57 55 Million heads 52,6 53 51 49 47 45 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Movimiento CREA (2016)
Herd Size Percentage Change 6.00% 3.95% 4.00% 2.35% 2.21% 2.14% 1.50% 1.73% 1.41% 2.00% 0.74% 0.33% 0.00% -0.42% -2.00% -1.50% -2.00% -4.00% -6.00% -5.84% -8.00% -10.00% -10.15% -12.00% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: SENASA
Carcass slaughter weight [Kg] 235 230 Established minimum slaughter weight: 165 Kg 226 225 220 215 210 205 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e Source: Ministry of Aroindustry
Argentina Beef Exports
Beef Exports 900,000 6,200 CWE ton USD/ton 5,700 771.427 800,000 5,200 700,000 4,400 4,700 600,000 4,200 500,000 3,700 3,200 400,000 2,700 300,000 234,000 2,200 200,000 1,700 1.679 100,000 1,200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 *2016 estimate • 500,000 Tons CWE Historical average 2011/2015 • 200,000 Tons CWE average Source: INDEC
Main Export Markets (Thousand metric tons) Russia 2,4 EU 20,6 China 35,6 Israel 15,1 Chile 15,5 Source: IPCVA (2016)
Main goals Increase exports OPEN new markets Better United States negotiations Canada to increase trade (Chilled and Frozen) and in the future: South Korea, Japan, Mexico
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