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19/09/2017 0:00 - Agricultural Commodities Market
RAÚL MILANO
Livestock: A sector that must make choices

The livestock and meat industries are entering a transformative period as to their future, with their members possibly oblivious to this fact. Changes within an industry are usually the result of collective actions, and all of its participant must bear this in mind when contributing to its development.

Leaving behind the euphoria generated by changes in the political front that removed barriers and distortions in cattle markets, the livestock and meat industries are entering a new phase with lower growth and great perspectives, filled however with questions as to what direction it will take.

I propose seven questions that will mark the destiny of our production:

1- Do we want our country to recover its position as an exporter or are we to depend on our domestic market?

2- Can pastures hold their ground against the advancement of feedlot practices?

3- Will the animals’ frame follow US standards or will it maintain the current genetic developments?

4- Should growth accelerators should be included to our sanitary standards?

5- Will meat consumption remain stable over the next century?

6- Should we foster centralized market or limit ourselves to direct selling?

7- How do we imagine the distribution of incomes within the industry?

These discussions must take place in the present, since they will determine in which direction we want to go, given our preferences and the constraints that a more interconnected world establish.

The first question is crucial to our destiny as a country, given that it will determine whether we go back to our origins as exporters or become exclusively dependent on the whims of the domestic consumer.

The second question must make us reconsider the role of feedlot practices within our production system, and whether this quasi-industrial process should entirely replace traditional practices or if we shall establish a mixed format which values environmental sustainability.

The third question refers to our position as the largest British-biotype cattle, which is a condition which is valued locally but limits our competitiveness in the international markets.

The fourth question highlights a heated debate about growth accelerators, which result in substantial profits for the producer but raise doubts about sanitary issues.

The fifth question is an example of our fear to innovate, given that we will keep limiting production out of fear of sustained consumption.

The sixth question, regarding the role of reference markets, must balance the reduction in costs from direct selling with the benefits from the establishment of reference prices which serve as a guiding light for supply and demand.

Answering the seventh question requires us to establish a systemic vision of the actors within this chain: breeders, greenhouses, cold stores, butchers, supermarkets, etc. We must look to make changes that benefits the chain through cost reduction and not exaction by those with a dominant position.

Surely more questions will be raised throughout this growth path, but what it is clear is that what we have to do is face them together. We must recognize our strengths and weaknesses, and know that opportunities arise when ideas appear.

 

 Institutional video


Institutional Video of the Bolsa de Comercio of Rosario (Rosario Board of Trade)

 Rosario Board of Trade

The Rosario Board of Trade is a centennial institution located in Rosario, in the most important agroindustrial zone of Argentina. Throughout its history it has created and boosted transparent, solid and reliable markets: the Grains Physical Market, the Futures Market, the Capital Market, and the Livestock Market.

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Bolsa de Comercio de Rosario Córdoba 1402 - S2000AWV
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