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Depressed Price for Beef in Argentina: Evaluating Inflation and Consumption Patterns

From the Circle of Sports Journalists of Bahía Blanca. He worked in the magazine Encestando (1985-2000). Currently, since 1987, he is editor of the La Ciudad section of the newspaper La Nueva Provincia. He is a journalist specializing in the agricultural sector since 2001. He is a member of the Buenos Aires Association of Agricultural Journalists (Abopa). Responsible for the website of the Cattlemen’s Association (AGA).

It is not remembered, in contemporary times, such a depressed price for beef in gondolas. This is so even considering —paradoxically, or not— the diminishing purchasing power of Argentines.

In a market where everything is adjusted for inflation, in the best of cases, because not a few corrections are above, the clearest data is provided by comparing the inflation of the last twelve months (115%) with the increase in the price of meat: 69%.

For the same segment (since June 2022), the increase in the price of live cattle in the Cañuelas marketing market was 48.1%.

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Once that myth —slogan or set phrase— that indicated that meat was expensive has been definitively fallen, such a common denomination does not seem to happen for other inputs that have followed the inflationary sequence.

Let’s see.

Leaving aside the extreme of the kilo of roast at 999 pesos, this week in our city you can buy the same cut at $1,490 or a little more expensive if it is exported at $1,535. In other places, further away from the downtown area, some higher difference has been appreciated: $1,590/$1,690.

In the case of other preferences, the shoulder or the pulp sells for 1,890 pesos per kilo, and a special cut like the matambre already goes up to $1,990.

Let’s compare.

In the same square in Bahía, a kilo of ice cream varies between 2,600 and 4,500 pesos and a dozen empanadas fluctuates between $3,800 and $5,200.

A pizza (ready to eat) ranges from 3,000 to 4,000 pesos, depending on the many tastes and specialties; a triple alfajor costs $250 pesos and a renowned milk chocolate filled with peanut paste (the one that is wrapped like caramel) costs 100 pesos.

Let’s interpret.

With the 1,500 pesos (average) for a kilo of roast —impossible to cite a more iconic reference for the Argentinean Sunday table, beyond pasta— you can buy 4 or 5 empanadas and between 400 and a half grams kilo of ice cream

Also 3 or 4 slices of pizza (of the same taste); 6 triple alfajores and up to 15 chocolates, which could be 18 or 20 if there is an offer of 3×2 or similar.

From the point of view of the consumer, it is still good news —in this socioeconomic context— to have beef at auction prices.

The same thing happens from the governmental point of view at the time of the publication of the INDEC Consumer Price Index (CPI), given the incidence of meat in the food category.

Let’s project.

The prologue is appropriate to try to explain why meat is in the values ​​that we see daily in supermarkets and butcher shops.

The (super and historical) supply of animals sent to slaughter as a result of the lack of pasture due to the three consecutive droughts, which seems to last for at least another month, acts as a limitation for an eventual price update.

The million dollar question is when will that happen (because it will). In this sense, most of the ranchers, who continue to pay for the inputs to produce at the inflationary rate but market in another context (and those who export do so in a complex exchange market and leaving income in export duties), agree (they pray ) in which the question does not go beyond the spring (also that it should not go beyond the spring).

Such a liquidation in a delayed market and with little supply of calves in the future will have its consequences. This is, in reality, the news to give: sooner rather than later, the price of beef for the consumer’s pocket will be corrected and, as always happens, it will not be gradually. And, yes then, someone will dust off the well-known myth about the price.

OTHER TOPICS IN THIS SAME COLUMN:

—The Agriculture We Don’t Look At: A Treatise on Floods and Droughts

—The Buenos Aires spill that was not (because the drought did not want to)

—Export: the small volumes that can make the country great

—Agroactiva 2023: another world that continues to project itself to the world

—Yield gap: the concept that forces to reinvent agronomy?

—Agricultural multi-risk insurance: a project to rethink the countryside

—Boiled milk: because of changes in habits or because of (lower) purchasing power?

—Magical realism: the consumer pays nearly $4 for every $1 the producer receives

—The numbers of the wheat: will there be bread under the arm?

—Vaccine meat: why is consumption falling in our country?

—What was missing: they ratify the downward trend in the price of export meat

—There will be no spill: the other consequences of a historic drought

—SD falls: if sustainability matters, someone will have to reset

—Side B of climate change: it affects more temperature than rainfall

—Beef: the added value that makes the difference

—Wheat: is the solution to eliminate withholdings?

—That the tree does not cover the forest: it is necessary to reinvent sustainability

—HB4 Wheat: the balm that can change the productive history of SOB

—Drought: Is it utopian to think that it is another opportunity?

—Beef (untamed): when will the price adjustment end?

—All the eggs in the same basket: Argentina is already the fourth consumer in the world

—Dry January: agribusiness (and the country) begin to feel the impact on exports

—Drought 2022: when the SOB had its own version of the core zone

—We are made of meat: Can not consume more than two hamburgers a week save the planet?

—All the meat on the grill (to continue losing to inflation)

—The die is cast: the losses of the 2022/2023 campaign will be multimillion-dollar

—Tell me again: cereal exports exceeded US$ 40,000 M in 2022

—Dairy: the drought and the soybean dollar II liquefy an already deteriorated sector

—Meat: the chain adds deterioration (and an increasingly cheaper roast)

—Farm machinery: why will drought affect technology upgrade?

—Drought: the double Nelson that conditions livestock

—The truck passes further and further away from the agricultural producer

—Our daily bread (arrives loaded with taxes)

—Chronicle of an announced drought: how long will it impact foreign exchange earnings?

—The perfect storm: you just have to look at the sky, pray and wait

—How to continue promoting beef and not die trying

—The next beef: with or without quartering?

—Yield gap: that the tree does not cover the forest

—La Niña feeds the saying: There are no two without three

—A platform for everyone

—”The more cows we have, the fewer fires we will suffer”

—Chopping the meat: is it time to put your shoulder to modernization?

—Greenhouse gases: Is the countryside the bad guy?

—Dollar soya: when creativity kills gallant

—Exports: beyond the restrictions, meat continues to contribute dollars

—Wheat 2022/23: Will it come with bread under its arm?

—Retentions: neither look nor touch (downward)

—Campaign 22/23: Why are the expectations of the field on the ground?

—What do bovine meat and Argentine soccer have in common?

—Soy: you have to read the fine print to understand what it is about

—Beef: when the debate should not only be about the price

—Biofuels: what if we are thinking of extending the cut?

—Agro-export: how to break records and survive in the attempt?

—Wheat HB4: Don’t all roads lead to Rome?

2023-07-14 08:00:42
#Exclusive #beef #cheaper

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