There is only a week left until the end of the year and Javier Milei’s government, among many announcements, has already canceled Precios Justos and in the next few days The program that allows you to buy five cuts of meat at cheaper prices will be anachronistic, what you get in large supermarket chains.
The sensational increase in prices on the cable car was felt more forcefully starting from 10 December, with the change of government, the meat even reached 50% and now on the horizon, specialists say they will have no choice but to lower prices in the face of declining sales.
Until December 31st, that is, one more week, you can still win the basket which includes offers of asado, matambre, sous vide, tapa de asado and skirt, the cuts most consumed by Argentines.
Now the undersecretary of Commerce of La Libertad Avanza led by Pablo Lavigne encourages private individuals to agree on promotions: agreement between private individuals and less state intervention, is the plan outlined by Milei which is reflected in the DNU of over 80 pages and modification 360° regulations.
As for meat, the exporting meat processing plants grouped in the ABC have made available until December 31st the volumes of the five most consumed cuts of meat, the export of which was prohibited until November. For the moment they will be found in the Walmart/Chango Más, Carrefour, La Anónima, Cencosud (Disco, Vea and Jumbo) chains and in Friar del Norte butchers.
Last Thursday the consumer price index (CPI) for November was released, the data showed a CPI of 12.8% and fueled projections of a December above 20%. The increase in food and beverages was 15.7%, while cuts Meat in the GBA increased between 12% per pound of rump and 16.8% per pound of roast. According to the statistics agency, last month this cut rose to $3,617.57, while the buttock, also increasing sharply (14.7%), was sold for almost $4,500 per kilo. These prices are already old due to the sharp increases in December.
The value at which the meat was obtained last September. Photo: Luis Robayo/AFP.How much do you get the 5 most popular cuts?
As part of this promotion, the skirt is sold in supermarkets for $2,900 per kilogram. Roast and tapa roast are sold for $4,900 per kilo, sous vide and matambre for $5,900 per kilo. The recommendation to get it is to go to the supermarket very early in the morning.
Over the weekend it became known that the Bioeconomy Secretariat had spoken to meat producers about making a new proposal. “Given the serious economic situation that Argentina is experiencing, from the Secretariat for the Bioeconomy We have agreed with the industry on the offer values for five grid cuts“, they indicated from the portfolio led by Fernando Vilella.
And he continued: “We are convinced that through dialogue we will continue to work together with the meat processing industry and supermarkets, important sectors of the Argentine economy.”
With the latest increases, a kilo of meat has reached a price of up to 8,000 dollars.
What will prices be like in the next few weeks?
The price of meat began to fall after the sharp rise recorded in the first fifteen days of December.
According to meat industry representatives, The only reason for the decline is that the public did not validate the increases faced with the loss of purchasing power that inflation is causing.
In a week the values of the real estate categories consumed on the domestic market have fallen drastically after the peaks of some special lots of 2,000 dollars. So, over 7 days, steers averaged $1,456 (%10); steers, at $1,489 (17%); and heifers, $1,422 (16%).
What will happen to domestic meat consumption?
Domestic beef consumption would decrease by 8.7% year-on-year to 2,200,000 tonnes of bone-in meat (r/c/h) in 2024, which represents a decrease of 200 thousand tonnes compared to the previous year, while a simultaneous decline in production and exports is expected, according to a report from the Rosario Stock Exchange (BCR).
Thus, the stock exchange body expects a decline in production by an average of 8% on an annual basis and by 6.1% in shipments abroad.
In the case of production, the report estimates a volume of 3,024,000 tonnes r/c/h for next year compared to 3,285,000 in 2023.
With the same trend, exports are expected to decline to 824,000 tons compared to 877,000 tons the previous year.
According to the BCR, the economic environment of 2023 has had a strong impact on the beef market.
In this sense, they contextualized itand “The year 2023 will go down in Argentina’s history for having witnessed one of the worst droughts experienced across the country: wheat production has fallen by almost 40% on an annual basis”, which has generated “serious difficulties for the Argentine economy, given that agro-industrial chains contribute 1 in 4 pesos collected by the national state , they employ 1 in 5 private sector workers, account for 2 in 3 dollars entering the country through exports and represent 20% of Argentina’s GDP.”
On the other hand, they underlined that “since pastures were scarce due to the lack of water, those carrying out livestock activities were forced to send a large number of animals to slaughter, with consequent high production and export numbers, as well as a recovery in consumption compared to the previous two years”.
In this line they specified that in the first 11 months of the year, 13.4 million animals were slaughtered, 9.7% more than the average of the last 5 years for the same period, while more than 800,000 tonnes (beef with bone equivalent) would have been exported, 23.6% more than the average.
“The year 2023 will go down in Argentina’s history for having witnessed one of the worst droughts experienced by the country: wheat production was reduced by almost 40% on an annual basis”
Furthermore, the BCR estimated that domestic consumption reached 2.2 million tons, that is, 2.4% more than the average of the last 5 years.
As for next year, however, the organization highlighted that it is estimated that by 2024, beef consumption will represent the highest percentage of Argentine meat consumption.
Therefore, domestic consumption is expected to stand at around 5.1 million tonnes next year, of which beef will account for 43% in 2024, followed by poultry at 42% and pork at 15%.
SN
Source: Clarin
