There have already been slight increases in meat prices and the increase is expected to reach 20% in the coming days
The values of beef cuts had a slight increase this week in butchers and supermarkets throughout the country but it is expected that the remarking will continue in the coming days, with increases that would be around 20%, which puts more pressure to inflation after October, with 3.8%, was the month with the highest inflation in recent years.
Mainly, the rise in the values on the counters is due to the fact that in recent days there was an update of the values of the different categories of property in the Liniers market.
The price of cattle in the main concentrating market of the country was around 100 to 105 pesos per live kilo at the beginning of the year and last Friday (there is no activity on Mondays) they closed with values between 135 to 140 pesos.
Thus, this increase will be transferred to the average beef, which went from costing $ 255 last week to $ 265 to $ 275 at the end of Friday and is expected to be between $ 295 to $ 310 approximate in the coming days, which means an increase in 20%, which will have a direct impact on the pocket of consumers.
“This transfer of the price increase will be effective in the butcher shops next week, apart from that there have already been some tinkering because some butchers have covered things to come,” said Leonardo Rafael, president of the Chamber of Slaughterhouses and Suppliers ( Camya).
In any case, Rafael remarked that it remains to be seen if consumers will validate the increase since “the economy is destroyed.”
For the livestock consultant Fernando Canosa, what usually happens in the beef market is happening. “The price always lags behind in relation to other economic variables and at one point makes an abrupt jump, but it is nothing more than a rearrangement,” he said.
“The problems of abrupt jumps in meat values have been going on for a long time and it is part of the macroeconomy. Inflation was 50%, so if your product did not increase, at some point it will have to rearrange ”, added the livestock consultant.
According to the latest report from the Argentine Beef Promotion Institute (IPCVA) in October, the prices of the different cuts of beef showed, on average, slight increases of 1% compared to September but an interannual increase of 57 %.
The cut that increased the most in October was the homemade hamburger, which grew 4%, reaching 390 pesos per kilo. It was followed by the strip roast and the slaughterhouse, with an increase of 2.1% reaching 390 pesos and 440 pesos per kilo, respectively, according to the work carried out by the IPCVA every month but which, due to the pandemic, is restricted to 60 butcher shops Capital and GBA, while the monitoring of prices in supermarkets was temporarily carried out following the online sales channel.
Price variation in the last two years.
Price variation in the last two years.
On the other hand, ossobuco was the cut with the highest price increase in relation to October 2019. It increased 66% in one year and is sold at $ 257 per kilo, while strip roast and meat were the other two cuts that most grew in value in this period, with a rise of 61%, which consumers paid $ 390 and $ 334, respectively.
On the contrary, the price of fresh chicken had prices with moderate increases of 3.6% in October and 32% year-on-year. In this context of greater increases in the values of beef cuts and a time of “skinny pockets”, the consumption of beef fell to 50 kilos per Argentine against the 60 kilos of 10 years ago and that of chicken grew exponentially to equal 50 kilos per capita for the first time in history.
In this sense, Rafael indicated that beyond the rise it had to be given because the numbers for corral fattening producers did not give, China began to demand more cattle that were destined for internal consumption, such as heavy heifers and heavy heifers.
“There is more demand for the farm than before there were only a few actors. Consumption had more categories so that the rise in the counters is slower. Now, the increases are accelerated because the number of categories has been reduced,” he said.
Beef exports between the months of January-October were 730,000 tons of beef and the Asian giant represented more than 70% of the total.
Particularly, in October there was a marked growth in the participation of China, in a month in which 59,000 tons of meat were exported, representing 81% of the total exported tonnage, according to data from the Consorcio de Frigoríficos Exportadores ABC.