Argentine Beef Prices on the Rise: Consumers Feel the Pinch
Argentine consumers are bracing for another blow as the price of beef climbs, a staple in the national diet. After months of stability due to reduced consumption, the popular cut saw a sharp 10% increase in the last week of November, signaling a potential trend towards higher prices as the year draws to a close.
"What we saw this week, with a 10% recovery, is a partial recovery," explained Daniel Urcia, president of the Federation of Regional Refrigeration Industries (FIFRA) and a member of the Argentine Beef Promotion Institute (IPCVA). "I don’t think this recovery will be complete between now and the end of the year. There is another 10% margin, but it seems to me only next year that we are going to get this price redesign."
This price hike follows a period of relative stability, driven by lagging consumer demand. "Meat price in October, the peak, for example, if I predicted it in January and updated it with CPI, it gave me $14,000. And we paid an average of $8,000," Urcia stated.
The reduction in consumption isn’t a recent phenomenon. According to the Chamber of Commerce and Commerce of Meat and Derivatives (CICCRA), domestic beef consumption has plummeted to 47.2 kilos per inhabitant – the lowest level recorded in 28 years.
This decline is attributed to several factors, including the economic downturn in Argentina, the reduction in subsidies almost a year ago by Javier Milei’s government, and the rising cost of living. These economic pressures are forcing many Argentinians to seek cheaper protein sources.
"It happens, against this situation of tight pockets, consumption tends to replace food with lower value substitutes," explained IPCVA. "This is exactly what has been observed in meat consumption, where the ratio of purchase between a kilo of roast and a kilo of chicken is almost 3 to 1 while the ratio against pork breast varies around 1.5 kilos."
Interestingly, despite the decrease in local consumption, Argentina is currently ranked as the second largest consumer of animal protein globally. This suggests that while beef consumption is down, the demand for other meats has increased, highlighting the evolving dietary landscape in Argentina.
On the export front, beef production has reached a 15-month high, driven by increased global demand. In the first ten months of 2024, Argentina exported 784,000 tons of bone beef, marking a 12% increase year-on-year. This indicates that while domestic consumption is diminishing, the global market for Argentine beef remains strong.
As for the future, economists predict that beef prices will likely continue to rise, potentially impacting Argentinian families as they grapple with ongoing economic challenges.
Domestic beef consumption fell to 47.2 kilos per inhabitant, the lowest level in 28 years. (Photo: AFP/Juan Mabromata).
2024-11-30 14:22:00
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## beef Prices Bite: Is Argentina’s Favorite Dish Becoming a Luxury?
**World Today News** – *Exclusive Interview*
Argentine families are facing the harsh reality of rising beef prices, a staple deeply rooted in the nation’s culture and cuisine. Daniel Urcia, president of the Federation of Regional Refrigeration Industries (FIFRA) and a member of the Argentine Beef Promotion Institute (IPCVA), sheds light on the factors driving this surge and its implications for Argentinians.
**WTN:** Mr. Urcia, a recent 10% increase in beef prices has caught many consumers off guard. What are the primary reasons behind this sudden jump?
**DU:** We saw reduced consumption earlier this year which led to a period of price stability. Though, that seems to be reversing. This latest 10% increase is a partial recovery – not the complete adjustment we expect. There’s further potential for price climbs, possibly another 10%, but that redesign will likely take place next year.
**WTN:** This recovery comes despite a significant drop in domestic consumption. What factors are contributing to this decline?
**DU:** The economic downturn in Argentina coupled with the lifting of subsidies nearly a year ago by Javier Milei’s goverment has impacted affordability. Families are struggling with rising living costs and are daher opting for cheaper protein sources.
**WTN:** The IPCVA mentioned that people are increasingly opting for chicken and pork. does this signify a permanent shift in argentinian dietary habits?
**DU:** It remains to be seen. while the preference for chicken and pork has grown, Argentina still holds its position as the second largest consumer of animal protein globally. This suggests that the demand for meat persists, even if the type of meat is evolving.
**WTN:** Despite this decline in local consumption, beef export numbers are on the rise. How is Argentina navigating this contradiction?
**DU:** Indeed, global demand for Argentine beef is strong. We reached a 15-month high in production, exporting 784,000 tons of bone beef in the frist ten months of 2024, a 12% increase compared to last year. It seems the global market is compensating for the domestic slowdown for now.
**WTN:** What’s your outlook for the future of beef prices in Argentina?
**DU:** I foresee continued price hikes, potentially impacting Argentinian families already grappling with economic pressures. The affordability of beef, a core part of our national identity, is becoming a growing concern.
**WTN:** Thank you for your valuable insights, Mr. Urcia. This conversation highlights a complex and evolving situation, one with significant implications for Argentinian consumers and the future of the nation’s beef industry.
