“I didn’t come to watch reality go by—I came to make things happen”

INAC President Gastón Scayola

The president of Uruguay’s National Meat Institute (INAC), Gastón Scayola, discussed his goals at the helm of the organization, the ongoing debate over ending foot-and-mouth disease (FMD) vaccination, Uruguay’s relationship with China, and his concerns about the sheep sector, among other topics.

Shortly after taking office, Scayola has a clear vision: to avoid remaining passive in the face of the sector’s structural problems and to lay the groundwork for a new institutional structure with a 20 to 30-year outlook. In an interview with World Beef Report (WBR), he shared his perspective on Uruguay’s sanitary status, the need to redefine the strategy for the sheep sector, Chinese market prospects, and his push for internal reform at INAC. “I didn’t come to watch reality go by—I came to make things happen,” he said. He also supports engaging in the debate over ending FMD vaccination —as advocated by the current Director of Livestock Services— because, to remain “top of the class,” Uruguay must aim for “the best sanitary status.”

It’s a common diagnosis in the industry: Uruguay is losing its comparative advantages over regional competitors in key markets like China and the U.S. What is INAC’s strategy to maintain a competitive edge going forward?

I really like INAC, because it’s dedicated to promoting Uruguayan beef around the world, and I’m convinced that selling Uruguay globally is one of the most wonderful things anyone can do. Why? Because we can market ourselves as the best in the class. We have great beef, solid systems, and valuable public goods: traceability, hormone-free production, and INAC itself, which is a rarity in global markets. So, over the next five years, when I go out to promote Uruguayan beef, I want us to remain the best in the region. And, as much as possible, I want us to have the best sanitary status.

----

“The one paying the price [of vaccination] is the sheep sector”

----

Brazil achieved FMD-free status without vaccination. Uruguay’s Director of Livestock Services, Marcelo Rodríguez, has proposed opening that discussion domestically. What’s your position on this?

Just like the Director of Livestock Services you mentioned —although I haven’t discussed this directly with him— I’m very open to that conversation. If Brazil can be FMD-free without vaccination, then we should at least talk internally about whether that’s an option for us. I support the discussion not just because I want Uruguay to be the best in the class, but also because there’s another important angle. Someone might argue that changing our status wouldn’t provide significant benefits for beef exports, since our traceability and credibility already allow us to overcome that hurdle. But let’s not forget that the one paying the price is the sheep sector. In a country that vaccinates against FMD —but doesn’t vaccinate sheep— Europe says bone-in lamb can’t enter. Today we need strong markets for sheep to reverse the sector’s decline. And to access better markets, we need to take steps like this.

I want to promote the sheep sector and get markets like Canada, Mexico, and Europe to allow bone-in lamb imports. If we keep the same status, that job becomes much harder. Why hasn’t the sheep compartment (which habilitates selling bone-in beef to the USA) progressed in 10 years? We need to talk about that. Compartment or not, the sheep sector needs to be organized. Europe and Mexico are my concerns; we need to boost production.

----

“I won’t stand by indifferently as the sheep sector collapses”

----

Your speech at the Rural Federation Congress struck some as blunt. You said that if we keep doing the same, the sheep sector is doomed to disappear. You also pointed out internal shortcomings. Is there a plan to create a joint table between industry and producers to define lamb types, weights, timing, etc.?

Coming to INAC meant leaving other things behind. So, if I’m here, I want to make things happen. First goal: I didn’t come to watch reality go by. If I can change it, I’ll do everything I can. Since I entered the sector in 2001, I’ve heard repeatedly that the sheep sector has been in freefall since the ‘90s. What I’m saying is: I won’t stand by indifferently. I’ll either do what I can to save it—or, if needed, sign its death certificate and move on. That’s why I’m eager to fix problems instead of living with them.

When someone says “let’s define the kind of lamb we need”, that’s been defined for years. Since 2001, with the “heavy lamb program,” it’s been clear what kind of lamb meets export conditions. Uruguay managed to sell a standardized product. INAC can help with classification. Five years ago, we decided not to implement carcass classification for lambs. I don’t get it—cattle have it, chickens have it. Why was lamb excluded?

We need classification. It’s already more or less defined. Breed doesn’t matter—what matters is age and size. Different breeds can help provide product year-round. Whether it has good wool or not—that’s the producer’s choice. We’re here to talk about markets, not breeds. We’re here to define what kind of lamb the customer wants. In some markets like Brazil, they ask for small cuts. That’s solved by halving the cuts. In Europe, that’s less of a concern.

If we have a minimum carcass weight of 18 or 19 kg, we can classify, organize, set standards, and communicate them to producers. Once INAC addresses its current top priorities, one of the next goals will be to establish a working group for the sheep sector.

----

“I want to remain the best in the class in the region”

----

What’s your view on Israel? Could it be a catalyst for boosting the sector?

I don’t know the destination of that meat, whether it’s for the Israeli Armed Forces or for the regular market. But buying half-carcasses —forequarters— looks like a good market option. Still, if we want to sell lamb globally, I’d rather target restaurant and hotel chains that buy cut-by-cut. I’d love to reach the end consumer, get as close as possible.

----

“Either we save the sheep sector or we sign its death certificate”

----

There was a strong promotional campaign in Brazil. Is it time to explore other niches?

Brazil has known Uruguayan lamb and its cuts for a long time. And Brazil buys cuts, not whole carcasses. Arab countries buy carcasses. Israel buys half. Right now, it’s a great market with good prices, helping sustain the sector. But we need to produce more lamb and continue targeting high-income segments that generate loyalty—customers who will actively seek out a leg or a rack of Uruguayan lamb.

----

“The industry, with its idle capacity, is not sustainable”

----

A Chinese delegation may visit Uruguay in the coming days. One key issue is tripe, which isn’t authorized in some plants. And there’s also one plant blocked—Sirsil. What are your expectations for the visit?

China has several open fronts. It was a pleasure to attend SIAL Shanghai in May, especially with the Minister (Alfredo Fratti). When you go as INAC President and the Minister joins —someone with greater political clout— you can speak with Chinese authorities on a different level. It was great to be closer and to confirm that they value us —and value us highly.

We discussed pending sanitary issues with the authorities. We raised the tripe issue. They told us they hadn’t had time, but that the SPS meeting between Uruguay and China would go ahead. We proposed holding it in the second half of July in Uruguay. I just found out that, due to the Chinese agenda, it’s been moved to the first week of August. All pending issues will be reviewed at that meeting. Uruguay has very few outstanding issues—two major ones: nearly half of the plants aren’t authorized for tripe, and the Sirsil plant. I’m optimistic that both will be resolved—I don’t see any arguments against it.

The meeting will be in Uruguay, and INAC won’t participate because it’s a Ministry-level issue. There’s also the matter of China’s safeguard mechanism, which brought us to China on March 31 and brought them to Uruguay on May 11. All parties have done their part. The Chinese delegation was hosted by INAC, a meatpacker, and a farm. Once again, we showed transparency and order. I believe they left convinced that Uruguay is highly professional. Now it’s in their hands—they must finish the analysis and decide before August 31. If needed, we’ve said we’re ready to travel to China on any day to clarify or follow up. But it’s no longer in our hands.

----

“I want a strong general management role with technical expertise”

----

What would you like to leave behind at the end of your term? What changes are coming at INAC in the next five years?

I came to make things happen. I didn’t come to observe reality. I worked 40 years in the private sector. To me, the goal isn’t to be the star—it’s to build companies that function without you. The job is to create structures and form teams that can replace and surpass you. As José Mujica said: it’s not about the person—it’s about what the person leaves behind. I’m starting today to organize the INAC of the future.

On Monday the 7th, the board approved a new organizational structure—more professional, with a general management role. We’ll open a search process for that position. I want a strong general management role with technical expertise and a structured work method, just like in any private company. The big task is building structures and teams that can replace and surpass us with a 20–30-year perspective. I won’t repeat the sad pattern of people making last-minute decisions that hinder the next administration. That’s off the table.

We already have an approved budget and have talked with all departments and trade groups. We’re going to prioritize key issues and start implementing them. One of those is already underway: the cow-calf program launched by the Ministry, which INAC co-funds and participates in. We want to add another push from INAC with a different set of producers, aiming to increase the number of calves. The industry, with its current idle capacity, is not sustainable. The cow-calf phase, the sheep sector, strengthening ties with China, resolving the safeguard issue before August 31, working toward a potential agreement with the European Union—those are priorities. Uruguay has a key role to play. There’s also the EFTA agreement.

----

“INAC’s efforts will continue to focus on China and the region”

----

What short-term benefits could the EFTA agreement bring?

Honestly, I haven’t studied it in depth, but considering the countries involved (like Iceland and Switzerland), I think it’s good to have—but it won’t move the needle. I’m more focused on the EU—to get more quota for beef and, if possible, better conditions for sheep. China is a highly relevant partner, and INAC’s efforts will continue to focus on China and the broader region: Malaysia, Vietnam, Singapore, the Philippines. We need to keep feeding markets—while never losing sight of the fact that China, due to its scale, could meet all our needs. Without tying ourselves to anyone, we must keep working—and take advantage of the fact that Europe may be looking for a partner in Mercosur.