INAC raises concern over low profitability in Uruguay’s meatpacking plants

A delegation from Uruguay’s National Meat Institute (INAC), led by its president Gastón Scayola, attended a session of the Lower House’s Livestock Committee last week to discuss concerns about meatpacking plants currently out of operation. The meeting was requested by Colorado Party deputy Horacio De Brum.

“In his presentation, the INAC president first raised concern about the low profitability of meatpacking plants in Uruguay, which is estimated to average between 1.5% and 2% annually. This poses challenges for the industry as a whole,” De Brum told Valor Agregado on Carve radio.

According to Scayola, one of the main issues is underused processing capacity. While the system could handle 3 million head per year, it is currently processing around 2.4 million. “Live cattle exports account for 300,000 head, so even if that were stopped, it wouldn’t solve the problem,” De Brum said.