In recent times there has been an increase in the price of meat in butchers and supermarkets across the country, ranging between 15 and 20%, which puts pressure on January inflation.
But, according to a study by the Mediterranean Foundation, value in Argentina is more affordable than in Chile, Uruguay and Brazil, contrary to what is thought in Argentina.
According to the document, the comparison between Uruguay and Argentina, based on the prices of public organizations/joint institutions, includes 12 cuts of beef at the final consumer level (the same for both countries). The latest information available dates back to December 2022. Here it appears that, for the aforementioned month, the average price of this basket of cuts was 9.06 dollars per kilo in Uruguay and 6.69 dollars per kilo in Argentina, 26% less.
“This gap is high compared to the one observed at the beginning of 2022, when it was only 3% in favor of Argentina,” said Fondazione Mediterranea.
In the comparative case between Chile and Argentina 13 cuts of meat were included (similar for both countries) and it was observed that, in December 2022 (latest information), the average price of this basket in the country transandino was US$11.98, while in Argentina it was US$7.89.
A survey of online supermarket shops was also conducted in the third week of January and the first week of February this year (in the latter case only for Argentina), to include Brazil in the beef price comparison in the area. . And for Argentina, two measurements were carried out to capture the transfer that usually occurs on consumer prices of significant increases in the price of livestock; It should be noted that the price of live animals, the main categories, has increased by 40% this year.
The survey conducted in the third week of January 2023 revealed that the average price of a basket of 8 medium/high quality cuts in Argentina was $1,780 per kilo. an average price of11.4% less than in Brazil.
However, in the survey conducted in the first week of February, this price had risen to $2,267 per kilogram, an increase of 27.3%. Therefore, an average price 11.4% higher than in Brazil
“During the first week of February, a price check was carried out in Brazil, to prevent prices from increasing in that country too, but this did not happen, stable values were observed”, he explained.
Situation in Argentina
According to the study, it is not clear whether the price adjustment for beef and meat will continue in the country in the coming weeks, as it depends on the consumer’s response to the new values, how he will welcome his decision to consume a product that has become now more expensive in relative terms, and how exports respond to a business that sees its margins shrinking (other variables ceteris paribus); The way in which agricultural producers adapt to the new scenario, that of higher prices and a climate that is beginning to normalize, will also be decisive.
Source: Clarin
