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The challenges of the poultry industry

Xavier Vargas, President of Cargill Protein - Latin America.

August 16, 2021

The poultry industry faces new challenges in an era of constant change. For example, 30% of the population in Latin America is made up of millennials, which confirms that we are facing a new consumer profile. Another aspect to consider is that 67% of the population in Latin America has access to the Internet, which marks new trends in the way people buy and consume products. On the other hand, we have a consumer who is more informed and concerned about the origin, processing and preservation of food.

inpage-Xavier-Vargas All these considerations have led the industry to face new challenges and projections for the future. What we are sure of is that chicken consumption will continue to grow and consolidate its leadership among animal proteins; however, it is likely that we will have to further technify our processes so that we can expand our product offerings.

I also envision that we will have a greater share of value-added products with an appropriate value equation in terms of convenience, price and quality. At Cargill, we have seen a trend in which people now have less time to prepare their food and are looking for solutions that make their work in the kitchen easier, so I believe that the industry will also adapt and look for solutions that meet those needs.

Additionally, from my perspective, I believe that the development of the modern channel will change the purchasing habits of the category, including a migration from live chicken to processed chicken, and will allow consumers to have access to a greater diversity of options.

In short, we have a great opportunity, as an industry, for growth and change, hand in hand with a changing society. The greatest challenge for poultry companies is to keep pace with this vertiginous movement, so that we can make the right investments at the right time and know how to read a changing consumer, who demands more information and innovation.

Xavier Vargas participated in the panel "Where is the Latin American Poultry Industry Headed?" at the II Latin American Poultry Summit held on January 27-28 in Atlanta, Georgia, where industry experts, researchers and poultry producers from Latin America converged.\

This is one of the most important poultry events in the region and brings together the main producers, experts and researchers in the sector.