The production, import, prices and general production of the sector swine They present a balance with an upward trend. This was stated by Jeffrey Fajardo, executive president of Porkcolombia, who also stated that they expect to close 2022 with a growth of 6.9% in productiona rate higher than that of 2021, which closed at 4.9%.
(‘Pork inflation is negative’: Porkcolombia leader).
According to the president of the union, during this year the national production of pork continues in line with the increase registered since 2010.
This is how, according to data from porkcolombiaFrom January to September 2022, pork production increased 6.6%, for a total of 383,535 tons, while for 2021 it was 359,749 tons.
“We are contributing to food security and the socioeconomic development of the country, especially in the producing areas, under a scenario of greater innovation, transformation, commercial integrations and generation of added value, but also facing a historic increase in production costs and of the volume of imported product”Fajardo told Portafolio.
However, a factor that afflicts the consumer is the variability of the cost of this protein. According to Porkcolombia, historically, for September 2016 the average monthly price per kilo on foot was $5,078 and for the same month in 2017 there was a slight increase, standing at $5,170. Then, for 2018, the prices decreased, reaching $4,443.
(Which is the meat that is eaten the most in Colombia and Latin America).
In 2019, the values registered for the ninth month of the year rose to $5,011 and in 2020, with the pandemic, they reached $5,656. But the strong rebound was evident in 2021, where the monthly average for September was $8,354. By 2022, the average value of the live hog went to $8,342 per kilo for that month and reached a maximum of $9,402.
And from August to September, the variation in the average price of live pork protein, per kilo, was 4.5%. Indeed, cold carcass meat was registered at $12,748 for September 30, 2022.
In turn, inflationary behavior reflects that it is a phenomenon that affects the purchasing power of households and consumers of pork in the country.
For this reason, Fajardo states that there is a constant concern because high inflation affects the lowest income levels, which can trigger the limitation of the purchase of the product.
“Inflation requires greater productive competitiveness so that the increase in prices in real terms is greater than that caused by the inflationary effect and a net profit margin for the sector is maintained,” express.
shopping for the interior
With data from the union, from January to August the accumulated imports were 94,400 tons, an offer 39% higher than that registered in the same period of 2021.
This is how the main importing destinations are The United States with 72.5%, followed by Chile with 14.1%, the European Union with 8.7% and Canada with 4.7%.
“94.3% of the imported product were cuts of meat and the balance corresponds to carcass (0.5%) and by-products such as skin, fat and preserves, mainly”, indicated the president of Porkcolombia.
Another factor that benefits and affects the pork industry is the volatility of the dollar. Faced with this, Fajardo assures that it is a dynamic that plays in two ways since on the one hand it protects the national production against the imported product, but at the same time, it touches the sector, since it is an importer of raw materials such as corn, soybeans and soybean cake for the preparation of balanced feed for animals.
(Angola, the first destination for local pork).
“The devaluation of the Colombian peso against the dollar, which in recent days is 23%, has caused the average CIF cost in national currency of the imported product to increase by 6.8% as of August, according to the Dian, favoring the commercialization of national production said the guild head.
Regarding the consumption of national pork, as of August 2022, it is estimated that it was 433,000 tons, which were covered by 78% by national production, maintaining the participation similar to that of 2019 in the same period.
In this way, the trade union representative states that one of the main and “bigger” challenges facing pork protein is the imported product.
“Porkcolombia has been carrying out the import substitution program since 2019, which establishes medium- and long-term trade relations between pig farmers and importing companies, which meets the objective of replacing the imported product with national production”indicated the president of the union.
According to Porkcolombia, the slaughter in heads from January to September 2022 was 4 million, which represented a variation of 6.3%, compared to the same period of time in 2021, where it was 3.8 million.
In turn, according to the Medellin Livestock Fair, in its bulletin number 45, the kilo of live fattened pigs registered an average price of $8,947 with 916 animals, while for those discarded standing it was $6,857 with 28 animals. According to the bulletin for discarded boars (stud male), the kilo was established at $5,450 with a total of 4 animals.
Faced with slaughter, a total of 12,534 pigs was estimated.
Diana K. Rodriguez T.
