After 8 months the price of meat has not increased: the reasons

The price of beef in July remained stable from the previous month after 8 consecutive months showing increases, in a context where monthly inflation for that month reached 7.4%, the highest in 20 years. While compared to the same month of the previous year, the increase reaches 59%.

According to the latest survey by the Argentine Beef Promotion Institute (IPCVA), beef prices have seen slight increases of 1% in outlets serving upscale socioeconomic neighborhoods. In outlets serving the average socio-economic level, prices remained relatively stable (0%); while in those serving the low socio-economic level, prices fell slightly by 0.6%.

In line with more stable property values ​​and less dynamic demand, In July, the average price of a kilo of roast fell by 0.5% compared to June, reaching respectively -0.9% and -0.3% per month in the case of rump and buttocks. Meanwhile, common ground beef recorded a monthly price increase of 1.2%, and the shoulder value did the same by 0.6%.

“In July, the prices of beef cuts such as roast, rump and buttocks underwent slight decreases compared to June. Meanwhile, the values ​​of shoulder and common minced meat continued to rise, albeit at a very low speed. to reinforce the sharp deceleration in the monthly rate of increase that was recorded in June, favored by the slight decline that the value of the standing property has had in the last three months “, indicates the report of the Chamber of Industry and Commerce of Meat and derivatives of the Argentine Republic (CICCRA).

As described by the Speaker of the House, Miguel Clearedthere was a drought of more than three in much of the Pampa region, which forced the farmer who overwintered the animals in the fields, slowly as they ran out of grass, put them in pens and fed on corn.

“Today the supply of finished animals for consumption is abundant, while the purchasing power is so low, so there is a lot of supply for the demand for domestic consumption that exists,” he explained, adding: “Prices were constant both in the Cañuelas market. as well as in the butchers “.

In that month, the average consumption of beef per inhabitant was equal to 46.9 kg / year, a figure 0.3% lower than twelve months ago (-0.1 kg / person / year) and 9, 1% compared to July 2019.

Leonardo Rafael, president of the Argentine Chamber of Butchers and Suppliers (Camya) agreed that “supply is absorbed by demand and demand is very low due to purchasing power. Meat is no longer served at the counter, as pork and chicken they do their job because they are meat with other values ​​”.

Meanwhile, the price of fresh chicken showed moderate price increases, with a 4.3% change in July compared to June.

For its part, the price of pork breast has shown prices in the same period with significant increases, up by 7.9% compared to the previous month. Compared to the values ​​of July 2021, chicken has increased the price by 85.8% and pork by 65.8%.

Schiariti pointed out that there has been rain in recent days, so he estimated that in mid-September the animals will no longer be in the pens, so there will be a reduction in supply and this will certainly lead to an increase in prices for October-November. , as usually happens every year at the end of the year. “Equalize the three or four months in which there have been no price increases and return to accompany inflation”.

Rafael added that exporters are raising categories for domestic consumption due to the lack of goods they normally buy. “They have started moving from one category to another and in a month and a half there will be a stronger increase,” he said.