South American meat industry faces consumption drops and shifting export trends

The meat industry in South America is facing significant shifts. In Argentina, beef consumption has dropped by 9.5% per capita, with residents consuming nearly 5 kilograms less than in 2025. This decline is driven by high retail prices, which saw beef cuts increase by over 50% year-on-year. Consequently, domestic-focused meatpacking plants are reporting eight consecutive months of losses, leading to potential staff reductions and discussions regarding rotating suspensions to preserve jobs.

Despite the domestic downturn, certain sectors show growth. Argentine goat meat exports surged by 380% in foreign exchange earnings during the first seven months of 2026, primarily driven by demand from the Middle East. Additionally, beef tallow exports have multiplied twentyfold over the last decade due to international energy policies.

In Paraguay, the pork sector is entering a challenging economic cycle. After years of expansion, producers are facing a 30% drop in finished pork prices while production costs, particularly for feed, remain high. Meanwhile, Colombian pork imports saw an 18% volume decrease in the first half of 2026 following a period of sustained growth.