Beef Prices Surge in Argentina Amid Record Inflation and Declining Consumption
In a year marked by economic turbulence, Argentina has witnessed a dramatic rise in beef prices, with cuts soaring by 12.9% in december 2024 compared to November, driven by heightened demand during the holiday season. This spike contributed to an accumulated increase of 51.8% over 12 months and an interannual variation of 81%, according to data from the National Institute of Statistics and Census (INDEC).
Despite these price hikes,beef consumption in Argentina has plummeted to its lowest level in nearly three decades. Per capita consumption fell to 47.2 kilos between January and October 2024, the lowest since 1996, as reported by the Chamber of industry and Commerce of Meats and Derivatives of the Argentine Republic (CICCRA). By year-end, estimates suggest a further decline to 47.4 kilos per capita, an 11% drop from 2023.
A Broader Look at Meat Prices
While beef prices dominated headlines, other meats also saw significant increases. Fresh chicken prices rose by 6.3% in December, culminating in a 67.3% annual increase and a staggering 112.1% jump compared to December 2023. Similarly, pork breast prices climbed by 10.6% month-on-month, with a 44.9% annual increase and an 89% rise year-over-year.
These figures stem from a complete survey conducted by the Argentine Beef Promotion Institute (IPCVA), which analyzed over 30,000 prices weekly across 80 butcher shops and 40 supermarkets in the Buenos aires Metropolitan Area (AMBA), as well as in Córdoba and Rosario.
Regional and Socioeconomic Disparities
The IPCVA survey revealed notable regional and socioeconomic disparities in beef price increases. In December 2024, beef prices rose by 11.3% in high-income neighborhoods, 13.4% in middle-income areas, and 13% in low-income zones.
Within the AMBA, butcher shops saw a 14.2% monthly increase, while supermarkets recorded a 10.2% rise. Over the year, beef prices in AMBA butcher shops surged by 49.4%, with a 73% increase compared to December 2023.Supermarkets, however, experienced even steeper hikes, with a 57.5% annual increase and a 101.9% year-over-year jump.
Geographically, the western Greater Buenos Aires (GBA) saw the highest monthly increase at 14.7%, followed by the southern GBA at 14%, the northern GBA at 11.9%, and Capital Federal at 11.2%.
Table: Key Price Increases in December 2024
| Product | Monthly Increase (%) | Annual Increase (%) | Year-over-Year Increase (%) |
|——————|———————-|———————|—————————–|
| Beef | 12.9 | 51.8 | 81 |
| Fresh Chicken | 6.3 | 67.3 | 112.1 |
| Pork Breast | 10.6 | 44.9 | 89 |
The Bigger picture
The surge in meat prices comes amid a broader inflationary crisis,with Argentina’s Consumer Price Index (CPI) rising by 2.7% in December and total inflation for the year reaching 117.8%. This economic strain has forced many argentinians to reduce their meat consumption, a staple of the national diet, to its lowest level in decades.As the country grapples with these challenges, the IPCVA’s findings underscore the profound impact of inflation on everyday life, notably for low- and middle-income households. With beef prices continuing to outpace wage growth, the future of Argentina’s meat industry remains uncertain.
For more insights into global inflationary trends and their impact on food prices, explore our analysis of beef industry trends and how they compare to other markets.
What are your thoughts on the rising cost of living and its impact on food consumption? Share your experiences in the comments below.
Beef prices Surge in Argentina Amid Record Inflation and Declining Consumption
In a year marked by economic turbulence, Argentina has witnessed a dramatic rise in beef prices, with cuts soaring by 12.9% in December 2024 compared to November, driven by heightened demand during the holiday season. This spike contributed to an accumulated increase of 51.8% over 12 months and an interannual variation of 81%, according to data from the National Institute of Statistics and Census (INDEC).
Despite these price hikes, beef consumption in Argentina has plummeted to its lowest level in nearly three decades. Per capita consumption fell to 47.2 kilos between January and October 2024, the lowest as 1996, as reported by the Chamber of Industry and Commerce of Meats and Derivatives of the Argentine Republic (CICCRA). By year-end, estimates suggest a further decline to 47.4 kilos per capita, an 11% drop from 2023.
Interview with Dr. Sofia Martinez, Economist and Food Industry Analyst
Senior Editor: Dr. Martinez, thank you for joining us today. Let’s start with the big picture. What’s driving this surge in beef prices in Argentina?
Dr. Sofia Martinez: Thank you for having me. The primary driver is argentina’s broader inflationary crisis, which has seen the consumer Price Index (CPI) rise by 117.8% in 2024. Beef, being a staple of the Argentine diet, is particularly sensitive to these economic pressures. Additionally, supply chain disruptions, increased production costs, and heightened demand during the holiday season have all contributed to the spike.
Regional and Socioeconomic Disparities
Senior Editor: the IPCVA survey highlighted notable regional and socioeconomic disparities in beef price increases. can you elaborate on these findings?
Dr.Sofia Martinez: Absolutely. The survey revealed that beef prices rose by 11.3% in high-income neighborhoods, 13.4% in middle-income areas,and 13% in low-income zones. This indicates that while everyone is feeling the pinch, middle- and low-income households are disproportionately affected. Geographically,the western Greater Buenos Aires (GBA) saw the highest monthly increase at 14.7%, followed by the southern GBA at 14%, the northern GBA at 11.9%, and Capital Federal at 11.2%.
Impact on Other Meats
Senior Editor: While beef prices have dominated headlines, other meats have also seen significant increases. What’s the situation with chicken and pork?
Dr. Sofia Martinez: Fresh chicken prices rose by 6.3% in December, culminating in a 67.3% annual increase and a staggering 112.1% jump compared to December 2023. Similarly, pork breast prices climbed by 10.6% month-on-month, with a 44.9% annual increase and an 89% rise year-over-year. These increases are putting additional pressure on households, forcing many to reduce their meat consumption considerably.
The Bigger Picture
Senior Editor: How does this surge in meat prices fit into the broader economic context in Argentina?
Dr. Sofia Martinez: The surge in meat prices is part of a larger inflationary crisis. Argentina’s CPI rose by 2.7% in December,bringing total inflation for the year to 117.8%. This economic strain has forced many Argentinians to reduce their meat consumption to its lowest level in decades.The IPCVA’s findings underscore the profound impact of inflation on everyday life, particularly for low- and middle-income households. With beef prices continuing to outpace wage growth, the future of Argentina’s meat industry remains uncertain.
Looking Ahead
Senior Editor: what do you see as the future of Argentina’s meat industry, given these challenges?
Dr. Sofia Martinez: The future is uncertain. If inflation continues to outpace wage growth, we may see further declines in meat consumption. This could have long-term implications for the meat industry, possibly leading to reduced production and job losses. However, ther are also opportunities for innovation and efficiency improvements within the industry to mitigate some of these challenges.
Senior Editor: Dr. martinez, thank you for your insights. it’s clear that the situation is complex and multifaceted, and your expertise has shed light on the many factors at play.
Dr. Sofia Martinez: Thank you for having me. It’s a critical issue that affects millions of Argentinians, and I hope that through continued analysis and dialogue, we can find solutions to these pressing challenges.
For more insights into global inflationary trends and their impact on food prices, explore our analysis of beef industry trends and how they compare to other markets.
What are your thoughts on the rising cost of living and its impact on food consumption? Share your experiences in the comments below.
