With the Real estate prices exploded And Edges in red, Export refrigerators they decided Take vacation early or stop working before the end of the year. Industry sources specified The between five and seven plants You have already stopped the activity or are in the process of stopping it until the first days of next January.
The situation has been confirmed THE NATION for him ABC Meat Exporters Consortiumwhich brings together the most important companies in the industry. “There are several meat processing plants that grant vacations for the holidays precisely because working with the farm’s values is very difficult at the moment and because they prefer to wait a while to see if the supply is rearranged and to be able to continue with the normal productive development of the farms.“, they emphasized from the entity.
According to industry sources, in a normal year the disruption tends to be concentrated in between Christmas and New Year. This time, however, the cuts started earlier ever-tightening margins. “The numbers don’t close“, summarized the CEO of one of the largest refrigeration companies.
In some cases, they explained, these are plants with high fixed costs They continue to work even if the results are negative, since a complete stop to activity also entails costs that are difficult to absorb.
From the industry they indicated that most of the refrigerators slowing down their activity started with this last Monday and will continue like this until then next January 5th. Others, on a larger scale, will stop later or for shorter periods of time. In all cases the diagnosis is similar: Export profitability has deteriorated sharply.
According to information from ABC Meat Exporters Consortiumthe price of the property is recorded Increases of more than 20% since last October’s electionfor both oxen and cows. During this time it was appropriate for the European Union – that is, animals that meet the health and traceability requirements required by this market – were assumed $6,300 to $7,700 per kilo of meatwhile the fat cow suitable for this market got out $5,500 to $6,400. In case of call Cow production For the industry, which is primarily intended for lower value markets, the price is around $5200when it was nearby before October $4200 per kilo.
On the income side, export values They have not experienced this increase in costs. From the entity they stated that the The Hilton quota price fell by about $1,000 per tonwhile China lost about $200in a context of lower demand. The Hilton quota negotiated between 19,000 and 19,500 US dollars per tontoday it moves in a strip $18,000 to $18,500as they pointed out. China, meanwhile, is experiencing a weaker scenario with fewer purchases and more downward pressure on prices. This market is the largest buyer in Argentina, accounting for 70% of purchases.
With it Discrepancy between costs and sales pricesthe industry’s margins were very tight or directly in red. Of the ABC Consortium They explained that in the case of kosher meatonly then will the company manage to reach the tie No product failuresthat is, if all production meets the required standards and can be sold to Israel.
However, if part of the goods is not suitable for this market and must be sent to Chinawhere prices are noticeably lower, the operation becomes a loss. In the case of Cow destined for Chinait’s directly about that a deal with negative results, they stated.
In this context, the industry emphasized that the Bringing vacation forward or temporarily ceasing work appears as a defensive decision in order to limit losses in weeks that also tend to be short operationally due to the holidays. “Those of us who continue to work often do so because we cannot stop the fixed costs, but the profitability of exported refrigerators is very poor today.“, they summarized in one of the most important companies.
Although the situation is not the same, in USA, where livestock shortages worsened and prices skyrocketed, news broke in recent weeks that reports said Reuters, Tyson Foods, A business giant will close a mega-factory in Lexington, Nebraska, that employs 3,200 people.
As the news outlet noted, the decision came after property supply fell to its lowest level in 75 years. The company lost $291 million compared to the previous year.
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