Last week the price of meat increased after the increase that occurred in the hacienda and puts pressure on January’s inflation ratewhich according to the consultants will be around 6%. And the livestock sector is expected to continue to rise in the short term due to lack of supply.
“There has been very strong pressure from all sides for price recovery. And as always happens, meat gradually rises,” said analyst Víctor Tonelli. “It fit more than I expected. We will see what happens in the next two weeks on the market and what return it will give. But, without a doubt, it is a recovery and still lagging behind 2022 inflation“, He added.
In recent days, in the Cañuelas agricultural market (main hub market) there have been jumps of up to 30% in the price of certain categories of animals intended for domestic consumption.
For example, the values of beef went from $346 to $430 on average per kilo from Friday 20 to Friday 27 of the current month (the last day of activity in the Cañuelas market) while beef values went from $338 to $407 pesos.
This increase that occurred in the last few days on the ranch was something that had been expected in the ranching industry, as the values were below inflation.
For reference, in March 2022 the price of the farm was 360 pesos and in December 2022 it was around 300 pesos, its value has dropped dramatically. “The prices of March of last year recovered only in the second week”, commented the well-known recipient Carli Colombo.
Thus, given this farm price lag, the values of cuts of meat in butcher shops and gondolas were lower than general inflation.
According to the Argentine Institute for the Promotion of Beef (IPCVA), in 2022 the average price of meat increased by 42% while inflation in the same period was 94%. What increased the most last year, still by the same ratio, were frozen burgers, which rose 124%. But the cuts most consumed by Argentines, such as roast, empty or square, have had increases of 40% to 48% for the year.
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Hernán Méndez, who runs Proveeduría Piaf, a butcher shop located in the Buenos Aires neighborhood of Palermo, highlighted meat prices last week after the farm he normally buys hiked. He paid 850 pesos per kilo of half beef against the 700 pesos he had paid 15 days earlier.
He pointed out that he had upgraded the “popular cuts” by 10% while the higher quality ones were already loaded before the Christmas and New Year holidays.
“The price of meat is formed day by day. EIt’s a question of supply and demand“There is demand for meat and if the supply continues to be low, as it is, it will surely increase again,” he said.
In this line, the butcher Sergio Pedace added: “We have to see if this price of 450 and 500 pesos for the main categories is consolidated. If there is a lack of finances due to the drought, it can make another jump.” he said.
Colombo also said the shortage of real estate supply will continue for another two to three months.
Furthermore, it is added that China – the main market for Argentina – has returned to requesting a greater quantity of meat after the restrictions caused by the Covid-19 – And the rest of the international market is reacting. Hilton share prices have increased 15% in the last month and is expected to reach $11,000-$12,000 a ton.
Source: Clarin
