1. January
2012
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Pork sector in Uruguay

2. Index
1. Introduction............................................................................................................... 3
2. Sectorial characteristics ............................................................................................ 3
3. Pork chain in Uruguay................................................................................................... 4
3.1-Structure ................................................................................................................. 4
3.2- Supply and demand ............................................................................................... 7
4. The global market and commercial opportunities ..................................................... 11
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3. 1. Introduction
The pork chain is one out of a set of 13 value chains selected to be impulsed by the
government, for which a series of sectorial policies have been defined in order to strengthen,
expand and articulate the productive structure of the country, increasing the added value and
the technological content of the Uruguayan production.
In particular, its potentials and restrictions were analyzed to increase its production and add
value to it, seeking strategic objectives and measures to raise the above mentioned
restrictions and exploit its potentials1.
This report aims to analyze the recent evolution and the perspectives of the pork sector in
Uruguay, as well as analyzing the world market and its projections. To such effects, the report
is structured in the following way. The first section presents the main characteristics of the
sector in Uruguay; secondly, the structure of the productive chain is examined as well as the
supply and demand of the sector taking into account production, consumption, and
commercial flow. Finally, the structure of the world market and its main perspectives are
briefly commented.
2. Sectorial characteristics
Pork meat is the most consumed in the world: 73 million tons in 2010, equivalent to 43 % of
the total consumption of meats.
This meat is outlined for being a great source of proteins. In average, among 18 to 20 grams
of protein per 100 grams of product.
In Uruguay there was an increase in the consumption of pork meat in the last years.
Although pork meat is the least consumed in our country (10,3% of total meats), in the first
semester of 2011 its consumption increased 9% compared to same period of 2010,
whereas the consumption of bovine meat, equivalent to 65% of the total consumption of
meat, decreased 5,4 % in the same period.
Uruguay imports meat and pork fats for its later elaboration. The raw material which
supplies the industry of porcine meat is mostly of foreign origin (61%), mainly from Brazil
and Chile, whereas the national production represents 39% of the raw material.
Uruguay does not have any type of sanitary restriction in the production of pork.
Uruguayan trade of pork is basically internal and is commercialized mostly in butcher´s
shops and supermarkets.
1
Documents are available on the Ministry of Industry, Energy and Mines, National Directorate of Industries-
http://www.miem.gub.uy/gxpsites/hgxpp001?5,10,529,O,S,0,,
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4. 3. Pork chain in Uruguay
3.1-Structure
The structure of the porcine meat chain is composed by four links:
Primary production
Intermediation
Industrialization
Commercialization
1. Primary production
Within the primary production are the activities of breeding, rearing and fattening. The
primary production is held basically by small producers (80%) whereas the medium and big
producers have a participation of 18% and 2% respectively. The majority of the producing
establishments are located in the south-central area of the country, being the Departments
(political division of Uruguay) of major production: Montevideo, Canelones, San Jose, Soriano,
Rocha and part of Florida and Lavalleja.
Map Nº1 - Pigs (Thousands of heads by Department) - Year 2010
In the last years a change has been registered in
the primary production, characterized by the
reduction in the number of producers.
According to the last porcine survey2, 54% of
the establishments surveyed in the census of
2000 abandoned production, remaining only
2.800 establishments. Nevertheless, the
existence of pork decreased in minor
proportion, determining a major concentration
of the production. The number of animals for
company changed from 42 in the year 2000 to
70 in 2010.
It is important to emphasize that a great
percentage of these producers perform
farm slaughter, where 50% is sold, 30% is for
consumption and 20% is destined to elaborated
products.
Source: Digital Map. Uruguay XXI
2
Direction of Agricultural Statistics – Ministry of Agriculture and Fisheries. Year 2006
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5. 2. Intermediation
This link connects the actors of the primary phase to those of the industrial phase, composed
by intermediaries and fairs. This latter canal is the most used by small producers who
specialize in breeding for later selling their pigs.
3. Industrialization
Includes the activities of slaughter and elaborated products. There exist diverse cuts of meat
and products, the first ones are outlined as fresh cuts, backbone (loin), palette, roast and ham
and the second ones can qualify in sausages and not sausages.
This phase is composed by slaughterhouses, companies that elaborate products, companies
that are only dedicated to production - with imported meat or native - and finally companies
that sell porcine meat.
As for the slaughterhouse, in 2010, the 10 authorized companies, registered slaughtering for a
total of 177.104 heads, of which 4 not only slaughter but also elaborate products. More than
80% of the total slaughter is concentrated in the above mentioned companies.
In reference to the companies dedicated to the elaboration of products, it is observed that
besides the 4 companies previously mentioned, there exist 15 other companies dedicated to
this production. It is necessary to emphasize, since it was mentioned previously, that many of
these companies use imported raw material.
Table 1 shows the slaughterhouses which elaborate products or not. In the first group, appears
Mirnabel S.A with 41.7% of the total slaughter, followed by Ardistar S.A (33.7%). On the other
hand, Arroyal S.A is the most important slaughterhouse which does not elaborate products
with a participation of 10.3%.
Table 1- Authorized slaughterhouses - heads slaughtered in 20103
Slaughter houses Number of pork heads % s/total
Mirnabel S.A (ex Pigusa) 73.848 41,70%
Ardistar S.A (ex cativelli) 59.717 33,70%
Arroyal S.A ( Lavalleja – Department
Government owned) 18.318 10,30%
Rondatel S.A 13.726 7,80%
Bordenave Motta, Alejo Eduardo 4.723 2,70%
Matadero Los Olivos Soc. Col. 3.412 1,90%
La Tablada SRL 2.071 1,20%
Luchasol S.A 699 0,40%
Matadero Mercedes Ltda 414 0,20%
Intendencia Mpal de Artigas 176 0,10%
Total 177.104 100%
Source: National Meat Institute (INAC)
3
Only taken into account slaughterhouses that effectively slaughtered in the year 2010, for this motive the slaughterhouse known
as Suc. Carlos Schneck is not listed.
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6. Next table shows the companies that elaborated products from pork, with its commercial
names.
Table 2- Companies that elaborate products
Name Commercial name
Antic S.A Propios
Asur S.A- Entereza- S.A Granja San José
C. Cristiani & Hnos S.A Tres Hermanos
Elías Gómez Ltda Lito Gómez
Est. J. Sarubbi S.A Sarubbi
Frig. Centenario S.A Centenario
Frig. Picorell S.A Picorell
Frig. Ecocarnes S.A Mossel, La Serrana, La Dolfina
Granja La Familia Ltda La Familia
Kali S.A Kali- La Italiana
Nolyser S.A El Ceibo
Ottonello Hnos S.A Ottonello
Sindon S.A Doña Coca
K y K Colonia Suiza KyK
Tilvenor S.A Productos Porcinos Fenix
Bordenave Motta, Alejo
Bordenave
Eduardo
Matadero Los Olivos Soc. Col. --
Mirnabel S.A --
Ardistar S.A --
Source: Ministry of Industry – “Chains of value III”.
4. Commercialization
The national commercialization is made thru different channels, such as butcher's shops and
supermarkets, though in a lesser scale, the direct sale of meat and elaborated products can be
found.
Likewise, to complete the meat chain, it is necessary to incorporate the inputs and the capital
goods, like the food based in grains, forages and by products of the lacteal industry, among
others. The increase of the production of grains in the country has contributed positively to
the development of this chain since 70% of production costs are due to food supply.
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7. 5. Research
In terms of research and development, it´s worth mentioning that Uruguay has, as part of the
Agronomic Faculty, belonging to the National State University, a specialized Unit of Pork
Producer´s which handles the education , research and extension plans as its main objective in
porcine production. In the last years diverse programs and projects of investigation have been
developed in areas linked to technology, genetics, quality of products, sanitary status, among
others.
3.2- Supply and demand
Production
The supply of pork meat showed a recovery in 2010 after the significant fall registered in 2009.
2010 finished with a production of meat of 18.397 tons, which meant an increase of 6.4 % with
regard to 2009. This increase is due to the major stock of porks-5 % in 2010-and to the
consequent increase of slaughter.
Table 3-Stock and slaughter of pig- 2002- Figure 1- Slaughter of pig-Tons and thousands of
2010 heads
Thousands of heads
Slaughter
1 Tons
Stocks
(Thousa 25.000 350
Year nds of Thousands
(tons of 300
heads) of heads 20.000
meat) 250
15.000 200
2002 255 266 19.565 150
10.000
2003 225 230 16.788 100
5.000
2004 235 261 17.424 50
2005 255 281 19.754 0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010
2006 240 277 20.383
Tons Thousands of heads
2007 245 297 21.057
2008 235 278 20.869
Source: Uruguay XXI based on data from Agricultural
2009 200 237 17.290 Statistical Yearbook 2011- Ministry of Agriculture and
2010 210 250 18.397 Fisheries.
Note (1): Includes farm slaughter
Source: Agricultural Statistical Yearbook 2011- Ministry
of Agriculture and Fisheries
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8. Internal Consumption
Uruguay has a meat consumption structure that differs from the rest of the world. While in our
country, bovine meat is the most consumed (65%) and pork is in third place (with a
participation of 10%), in the rest of the world pork meat leads the consumption of meat with a
share of 43% in total.
Figure 2- Structure of the consumption of meats in the world and in Uruguay - Year 2010
100%
24%
70% 65%
27%
Bovine
40% Poultry
43% Suine
20%
Ovine
10% 10%
6% 5%
World Uruguay
-20%
Source: Uruguay XXI based on data from FAO e INAC
However, in recent years there´s been a change in the habit of meat consumption in Uruguay,
increasing consumer preference for pork meat. In 2003, pork consumption per capita stood at
8.3 kilos, while in 2010 this consumption reached nearly 10.7 kilos per capita, determining that
the growth of pork consumption in 2010 was the largest of all meats (13 %).
Of continuing this behavior, it is estimated that in 2011 the consumption will reach 11 kilos per
capita. This growth is due to the even greater participation in the share of consumption of
fresh meat, combined with a major presence in places of commercialization such as
supermarkets and butcher´s shops.
Table 4- Evolution of the consumption of meats in Uruguay - kg per capita
2006 2007 2008 2009 2010
Bovine meat 51,2 51 54,7 58,2 61,2
Poultry 17,7 14,7 17 19,0 19,0
Suine meat 9,0 9,6 8,6 8,6 9,7
Ovine meat 6,2 6,2 5,7 5,8 4,5
Source: INAC
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9. Figure 3- Variation of the consumption of meats in Uruguay - % Var Kg per capita
50%
38%
40%
30%
20% 13% 13%
8% 5%
10% 2%
0%
0%
-10% Bovine meat Poultry Suine meat Ovine meat
-20%
-30% -22%
Variation % (2006/2005) Variation % (2010/2009)
Source: Uruguay XXI based on data from INAC
Exports and imports
Foreign trade of the sector presents a deficit due to the characteristic from which Uruguay
imports a high volume of pork meat that is used for domestic output. On the export side, these
are very limited on both, porcine meat and elaborated products, which reflects that the
industrial production takes the internal market as a destination. The imports, on the opposite
side, reach a considerable value (US$ 43 million in 2010), of which 86% are imports of pork.
Porcine Meat
Regarding exports of pork there was a significant decrease in the period 2006-2010, being the
Russian Federation the only destination in 2006 and exports in 2010 reached only 4 tons. It is
necessary to emphasize that last year´s exports correspond only to Rondatel S.A. and its sole
country of destination was Equatorial Guinea, country that registers purchases in every year of
the period. On the other hand, in 2011 there were not registered exports of this item.
Import values registered an upward trend in the period 2006-2010, presenting an average
annual growth rate of 28%. It should be noted that imports in 2011, overcame the registered
ones in the closed year 2010 - both in value and in volume. Brazil is the principal importer,
representing 88% of the total of the volume imported, followed by Chile (5 %) and
Denmark (4 %).
The main importers are Centenario SA (19%), Sindon SA (18%), Wilisol (12%) and Carlos Shneck
(9%) together representing 58 % of total tons imported in 2011.
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10. Table 5-Export and import of porcine meat –US$ and Tons
Export Import
Year
US$ Tons US$ Tons
2006 1.171.360 652 13.941.975 7.796
2007 590.812 378 18.195.750 10.079
2008 21.234 6 25.469.383 9.451
2009 31.122 8 25.311.013 11.278
2010 17.887 4 37.524.740 13.340
2011 0 0 51.392.550 17.093
Source: Uruguay XXI based on data from National Customs Administration
Pork products
The exports of products derived from the porcine industry are very scanty and consist of the
following products: prosciutto, hams and shoulders.
As shown in the table below, excluding the exports of raw ham – which were continued from
2006- the other products were exported in punctual years. The exports of raw ham correspond
to a sole company, ÑANDUGUAY S.R.L., whose destination is Brazil. Other products were
destined to Brazil and United States.
Table 6-Export of pork products- Data in US$ and Tons
2008 2009 2010 2011
Products
US$ Kilos US$ Kilos US$ Kilos US$ Kilos
Raw ham 3.360 200 7.650 500 6.360 400 6.360 400
Others Hams 0 0 0 0 0 0 0 0
Shoulders and
cut thereof of 0 0 25.197 3.600 0 0 0 0
swine
Total 3.360 200 32.847 4.100 6.360 400 6.360 400
Source: Uruguay XXI based on data from National Customs Administration
Regarding the imports, it is highlighted the high value of imports of pork fat. This product is
used as raw material in the processing industries. In 2010, the imports of fat contributed in
more than half of the value of derivate products, reaching US$ 3,6 millions. The first origin of
these imports is Chile, representing 50% of total imports, followed by Denmark (23%).
Other products of the processing industries imported by Uruguay are “Shoulders and cut
thereof of swine” and “ham”, which together represent 16% of the total amount of imports.
Likewise meat, Brazil is the main origin of these imports, being SADIA the company
responsible.
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11. Table 7- Imports of the processing industries and derivates - Data in US$ and Tons
2008 2009 2010 2011
US$ miles Ton US$ miles Ton US$ miles Ton US$ miles Ton
Pork Fats 3.635 2.928 3.061 3.134 3.633 5.872 4.078 3.413
Shoulders and cut thereof 854 464 692 436 936 552 1.192 535
Raw ham 807 96 884 114 990 122 1.343 131
Hams and cuts thereof 751 291 771 315 717 296 1185 391
Total 6.048 3.780 5.408 3.999 6.276 6.841 7.798 4.470
Source: Uruguay XXI based on data from National Customs Administration
Investment
Since 2007, with the approval of Decree Nº 455, which regulates Chapter III of the Law of the
Promotion and Protection of Investments (Law Nº 16.906), there have been approved a wide
range of sector projects, totaling US$ 3.07 million. These investments
are mainly concentrated in the industrialization and sale of pork products.
4. The global market and commercial opportunities
World production of pork meat totalized a volume of 102.7 million tons in 2010 and is
expected to reach a record level by 2012. This growth is due mainly to the recovery of South
Korea and China. China is the largest producer, accounting for 50% of the total
volume followed by the European Union (22%) and Brazil (3%).
In terms of consumption, during the past 11 years, world consumption grew steadily except
for 2007, the year in which it fell 1.4% due to the fall in the demand of China by
7.4%. Consumption in 2010 totalized 102.5 million tons of meat, a slight increase is
estimated for 2012. Again, the main consumers are China, European Union, Brazil and it should
be added the United States which ranks as the third largest consumer of pork.
In the region, consumption is also increasing, with Brazil and Mexico the largest consumers,
followed by Chile and Argentina.
Figure 4 - Major consumers of pork - Year 2010
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12. Vietnam
Russian 2%
Mexico
Federation Japan 2% Others
3% 2% 10%
Brazik
3%
USA
8%
EU China
20% 50%
Source: Uruguay XXI based on data from USDA-FAS
While pork is the most produced meat in the world, exceeding production of poultry meat (77
million tons) and beef (57 million tons), it is not the most widely traded. In 2010 the tonnage
exported was 6 million and the tonnage imported was 5,8 million, implying that only 6% of the
production was traded.
Regarding exports, the United States is the largest exporter followed by the European Union,
Canada and Brazil. It is estimated that by 2012, United States exports will rise and European
Union exports will decline, reaching a volume of 2.3 million and 1.9 million tons
respectively. Regarding imports, the major importers are Japan (19.3%), Russian Federation
(14.8%), Mexico (10.1%) and South Korea (10%).
Figure 5 – Main importers of pork meat - Data in millions of tons
Millons of Tons
1,4
1,2 1,2 2011* 2012*
1,2
0,9
1,0
0,8 0,7 0,6
0,6 0,7
0,6 0,6 0,5
0,6
0,4 0,4
0,4 0,4 0,4
0,2 0,2 0,2 0,2
0,2
0,0
Source: Uruguay XXI based on data from USDA-FAS. Note (*): forecasted figures.
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13. Global Perspectives4 Global consumption of meat, 1996-2014
Millions of Tons
For 2014 it is
expected a moderate growth, 200
consumption, production 180
and world trade in meat, resulting 160
140
in a dynamic market. According to
120
FAO's strong economic growth
100
in developing countries in 80
conjunction 60
with consumer preference for 40
foods with higher protein 20
content will lead to increased 0
consumption of meat. This
growth will be driven by
increased production of pork and Bovine meat Pork Poultry Ovine meat
poultry in developing countries. Source: FAO
4
Source: agricultural perspectives, OCDE-FAO, 2005-2014, http://www.fao.org/docrep/008/y9492s/y9492s00.htm
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