Argentina’s Meat Industry Faces Challenges Amid record Exports and Declining Consumption
Argentina’s meat processing industry has navigated a turbulent year, marked by a mix of recovery, environmental challenges, and shifting consumption patterns.According to a report by the Chamber of Industry and Commerce of Meats (CICCRA),the sector slaughtered 1.239 million head of cattle in December 2023, contributing to a partial recovery in activity during the third quarter. However, the year ended with a 4.1% decline in total slaughter compared to 2023, with 13.924 million head processed.
The persistent dry season that plagued 2023 played a significant role in shaping the industry’s dynamics. The drought accelerated the sending of animals to slaughter and disrupted the pregnancy and calving cycles, leading to a smaller calf harvest in 2024. While the recovery of pastures later in the year improved field rearing, it delayed the completion of the rodeo for slaughter.
Female Slaughter Moderates, Production declines
In 2024, the participation of females in total slaughter decreased to 47.7%, down from 48.2% in 2023. This shift indicates a move away from a stock liquidation process toward a level consistent with maintaining the herd. of the 6.646 million females slaughtered, 60.5% were heifers and 39.5% were cows. Male slaughter, on the other hand, accounted for 7.278 million head.Despite a higher average hook weight,beef production contracted by 3.4% year-on-year, totaling 3.177 million tons r/c/h. This decline was primarily driven by reduced slaughter numbers.
Record Exports Amid Falling Domestic Consumption
Argentina’s beef exports reached a historic high in 2024, totaling 936.1 thousand tons r/c/h—a 9.8% increase over 2023. This surge in exports contrasts sharply with domestic consumption, which fell to 2.240 million tons r/c/h, marking an 8.0% annual decline. This figure represents the lowest level of apparent beef consumption in 22 years.On a per capita basis, beef consumption dropped to 47.7 kilos/year, a 9.0% decrease from 2023. This is the second-lowest record as measurements began in 1914, with only 1920 registering a lower figure at 46.9 kilos/inhabitant/year.
economic Context: Inflation and Consumer Prices
The Consumer Price Index of Greater Buenos Aires (IPC-GBA INDEC) rose by 2.9% monthly in December 2024, bringing the annual inflation rate to 122.1%. This economic backdrop has likely contributed to the decline in beef consumption, as rising prices strain household budgets.
Key Takeaways
| Metric | 2024 | Change vs. 2023 |
|————————–|————————|———————–|
| Total Slaughter | 13.924 million head | -4.1% |
| Female Slaughter | 6.646 million head | -5.0% |
| Beef Production | 3.177 million tons r/c/h | -3.4% |
| Beef Exports | 936.1 thousand tons r/c/h | +9.8% |
| Domestic Consumption | 2.240 million tons r/c/h | -8.0% |
| Per Capita Consumption | 47.7 kilos/year | -9.0% |
Looking Ahead
The Argentine meat industry faces a complex landscape in 2024. While record exports highlight the sector’s global competitiveness, declining domestic consumption and environmental challenges underscore the need for strategic adjustments. Stakeholders must balance export opportunities with efforts to stabilize herd numbers and address economic pressures on consumers.
For more insights into Argentina’s agricultural trends, explore the latest reports from CICCRA and stay updated on the evolving dynamics of the global meat market.
In 2024, Argentina’s meat industry faced a paradox: while beef exports reached historic highs, domestic consumption plummeted to its lowest level in over two decades. Environmental challenges, shifting consumption patterns, and economic pressures have created a complex landscape for stakeholders. To better understand these dynamics, Senior Editor Michael Carter of World Today News sits down with Dr. Elena Martínez, an agricultural economist and specialist in Argentina’s livestock sector.
Recovery Amid Environmental Challenges
Michael Carter: Dr. Martínez, the 2023 drought significantly impacted Argentina’s meat industry.How did this shape the sector’s performance in 2024?
Dr. Elena Martínez: The drought accelerated the slaughter process,as ranchers sent more animals to market due to scarce pasture conditions.This disrupted pregnancy and calving cycles, leading to a smaller calf harvest in 2024. While pasture conditions improved later in the year,it delayed the completion of the rodeo for slaughter. Total slaughter fell by 4.1%, with beef production declining 3.4% year-on-year, driven by reduced slaughter numbers.
Female Slaughter and herd Maintainance
Michael Carter: Female slaughter decreased in 2024. What does this shift signify for the industry?
Dr. Elena Martínez: The decrease in female slaughter, down to 47.7% of total slaughter from 48.2% in 2023, indicates a move away from stock liquidation toward herd maintenance. Of the 6.646 million females slaughtered, 60.5% were heifers and 39.5% cows. This shift is critical for stabilizing herd numbers and ensuring lasting production in the long term.
Record Exports vs.falling Domestic Consumption
Michael Carter: Beef exports surged by 9.8% to 936.1 thousand tons r/c/h,yet domestic consumption fell to 2.240 million tons r/c/h. What’s driving this divergence?
Dr. Elena Martínez: The surge in exports reflects Argentina’s competitive pricing and strong global demand, particularly from China and the United States [[3]]. However, domestic consumption has declined due to economic pressures. Inflation reached 122.1% in 2024, significantly straining household budgets. Per capita beef consumption dropped to 47.7 kilos/year, the second-lowest level since records began in 1914.
Economic Context and Inflation
michael Carter: How has inflation impacted consumer behavior in Argentina’s meat market?
Dr. Elena Martínez: Rising prices have made beef less affordable for many consumers.The Consumer Price Index for Greater Buenos Aires rose by 2.9% monthly in December 2024, contributing to the 8.0% annual decline in domestic beef consumption. As a result, consumers are shifting to more affordable protein sources, which is reshaping the market dynamics.
key Takeaways and Looking Ahead
Michael Carter: What are the key takeaways for Argentina’s meat industry,and what lies ahead?
Dr. Elena Martínez: The industry must balance export opportunities with efforts to stabilize herd numbers and address economic pressures on consumers. Strategic adjustments are needed to navigate environmental challenges and shifting consumption patterns. stakeholders should focus on sustainable practices to ensure long-term growth and resilience.
for more insights, explore the latest reports from the Chamber of Industry and Commerce of meats (CICCRA) and stay updated on global meat market trends.
