Opportunity to connect, with limited business

With two of the three days of the Sial fair completed, Copayan’s CEO Fernando González said the event has been “very quiet,” falling short of the meat industry’s expectations, with lower-than-usual foot traffic. “It’s an opportunity to connect, and that’s how we value it — though there have been few deals,” he said.

He attributed the greater difficulty in closing deals to China’s current economic challenges. “According to our clients, China’s economy is operating with less fluidity than usual, and that’s affecting how business flows.”

For the head of Copayan, Brazil’s reduced exports to the U.S. in recent weeks has led the country to shift more attention toward China. “That’s a concern, considering Brazil’s volumes and the cattle price gap between the two countries,” he remarked.

González said the expectation is for “a recovery in Chinese demand during the second half of the year,” which typically happens to meet the extra needs of Chinese New Year, taking place between late January and early February. However, he added that “a lot will depend on Brazil’s supply. If Brazil doesn’t put too much pressure on the market, the second half is always an opportunity.”

Copayan is currently investing in its plant. González explained that the company is developing its cold storage capacity — “expanding freezing capacity and chilled storage to operate with more flexibility and continue diversifying markets, which is always our strategy to manage stocks better.” This is being done without increasing slaughter capacity. “Diversifying more ultimately means greater added value and competitiveness,” he said.

On the high cattle prices for slaughter in Uruguay, Copayan’s CEO commented: “Hopefully the market stays at these levels, which allow the supply chain to move positively.