After the significant jump in agricultural and meat prices between November and December, since last week, in the midst of the holiday and barbecue season, the same laws of supply and demand are putting prices to the test in a market with very uncertain prospects. purchasing power.
With the entry of 12,342 specimens into the Cañuelas Agricultural Market (MAG), the price of the farm dropped again this Wednesday, with drops between 5% and 6% in light-fed animals. Since this was the most important day of the last week of the year in terms of revenues, demand continued to be very selective, taking into account the decline in consumption at the counters. However, the values offered have improved with the appearance of special lots, according to the specialized website Del Sector.
Beef is still sought after and cows are kept, although canning cost a minimum of $800 and a maximum of $1,100 was paid for production. In the previous round, after the Christmas holidays, 2,131 animals were entered, which were sold at high prices compared to last week.
In this way, from the peak of 2,000 dollars per kilo of beef reached after the sharp rise in the official exchange rate, Values currently fluctuate between 1500 and 1600 dollars, which represents a loss of between 20% and 25%. However, in some categories they are still between $100 and $200 more.
As representatives of the meat industry have stated, the only reason for the decline is this Public opinion did not validate the increases due to the loss of purchasing power which is causing inflation.
This reality is already reflected on the counter. Now you can get a file kilo of roast or empty between 5,800 and 6,000 dollars per kilo in some butchers of the City of Buenos Aires, compared to more than $8,000 recorded at the height of the treasury increase.
In this regard, the president of the Argentine Chamber of Matarifes and Suppliers (CAMyA), Leonardo Rafael, assured Juan Erreca in TNCampo: “In the capital you always pay a little more, but in the suburbs it is already 5,000 dollars per kilo of roast . In fact, I have it in the butcher’s shop for $5,000 with a 10% cash discount, so it’s even a little lower. This will increase sales for this holiday season.. The decline is already being transferred to the counters, people are accepting it and we hope that there will be excellent sales this weekend.”
These figures are similar to the promotional basket launched, until December 31, by the Argentine Meat Exporters Consortium (ABC) in the midst of the escalation of livestock prices.
“The decline is important. Not so much in the cuts required at this time.” remarked Sergio Pedace, vice president of the Argentine Chamber of Matarifes and Suppliers (Camya).
The Argentine Institute for the Promotion of Beef (IPCVA) revealed that the prices of different cuts of beef recorded a variation of 11.6% in November compared to the previous month. The year-on-year increase is 189.2%.
While in the first 14 days of December there was an increase of 51% which puts pressure on all the rest of the prices.
“No one believed this 50% increase in one week. Neither the public nor market operators. It was more linked to politics and uncertainty than to the lack of finances,” explained Miguel Schiariti, president of the Chamber of Industry and of the Meat Trade. (Ciccra).
In conversation with TN, recipient Oscar Subarroca assessed: “The market was very weak. Values have fallen sharply and this Wednesday, It was difficult to reach $1500 (per kilo) with just a few batches. In fact, most consumer real estate lots were in the $1,200 to $1,500 range, most I would say were in the $1,300 to $1,400 range. The cow also lowered its values a bit. The one that sold for $1,200 was $1,100.”
According to Subarroca, the reason for this correction is the decline in consumption. “Butchers have only now begun to lower prices, with serious losses for butchers who still had expensive meat in their cells, who had purchased it for between $1,700 and $2,000 per kilo. For this reason I estimate that next week the values on the meter will decrease again.”
Regarding the evolution of prices, the recipient specified: “When all the meat supplies in circulation today are exhausted, around January 15, prices will return to normal.”
Source: Clarin
