The INDEC reported that in February general inflation was 6.6 percent, and disaggregating the items we observe that in the first line is food, especially meat, which showed average increases of 21 per cent. hundred in the city of Buenos Aires, with even more marked increases in some cuts: roast (28.6%), minced meat (35%), shoulder (33.5%), rump (34.3%) and buttock (32 .8%) .
From the sector, most players agree that it is a phenomenon heralded by the increase that took place in January in the price of fat farms, which in the Cañuelas market averaged 30 percent. It was a rebound that everyone in the industry was already waiting for, based on the fact that the price of livestock for slaughter, and also of meat over the counter, had been losing ground against inflation for a year. Over the course of 2022, according to the Beef Promotion Institute (IPCVA), the average price of meat increased by 42% while inflation for food was 94%.
The rise of the hacienda was also explained by a temporary drop in supply, explained by seasonal factors. In the warmer months the farms avoid being full to reduce animal mortality. Producers said this supply restriction was no longer acute due to the drought prompting them to take the load off the fields.
Now that step that the company has raised has been transferred to the prices of meat over the counter. Of course, the phenomenon is not observed equally everywhere. Two realities have long coexisted on the market: a moderately contained price segment due to the brutal economic crisis that the most vulnerable neighborhoods are suffering, and another segment that is always willing to pay anything for quality meat. This was also observed in the livestock market, where different prices were paid for the best quality animals while for the rest the demand was and continues to be very selective.
As with fruits and vegetables and many other items, prices vary greatly depending on neighborhood and quality.
He care price promoted by the Government contributes to consolidate this situation. These are the 7 most consumed barbecue cuts on the domestic market and whose export is prohibited until December 31st. The prices per kilo of the denominations are as follows: empty, 1,351 pesos; matambre, 1,310 pesos; skirt, 675 pesos; roast cover, 1,035 pesos; buttock, 1,375 pesos; and palette, 1,113 pesos.
Will the price of meat continue to rise? In an inflationary environment like the current one, it’s hard to imagine that won’t happen, but judging by what happened in the financial market in February, where January’s uptrend ended, the shelf rally should take a breather.
There are other factors to take into consideration. On the supply side, if the long-awaited rains arrive and pastures grow back, some withholding of property by producers could be observed. On the demand side, as the crisis gets worse, there doesn’t seem to be much argument for an increase in consumption, but we will have to look at what happens over the Easter weekend, which is usually a key date for measuring this variable.
Source: Clarin
