The cattle slaughter continued in August at high levels and does not explain by itself the rise in cattle prices that occurred since the end of July, when the business operators argued that the shortage was the reason for the skyrocketing prices.
In August, 1,238 million cattle were sent to slaughter, which means a decrease of only 3.8% compared to July.
The largest drop occurred in steers with a decline of 10%, followed by that of heifers that fell 6%. The slaughter of fell by 3%, that of calves by 1.8%, while the slaughter of cows was far from having a significant drop: its decrease was 1.7%.
Females represented 47.4% of the total, which shows that the stock of mothers is not at risk. Even so, this does not mean that next year there will be a good supply of calves since the calves did not give well this year due to the drought.
The drop in slaughter is just one of the possible explanations for the price rise that occurred from the end of July to mid-August, when domestic consumption said no to increases in the farm. Of the 400 pesos that the farm raised in recent weeks, it lost between 100 and 130 for that reason.
The other arguments that explain the recomposition have to do with the fact that, although the total drop was reduced in the categories that go to domestic consumption, the availability of steers, steers and heifers was more marked, although not enough to generate such a price spike. .
Political uncertainty reduces payment terms, while the economic crisis puts a brake on the rise in farm prices
According to analyst Victor Tonelli, added to this situation was “the need for price recovery, after many months behind inflation. Secondly, the devaluation that occurred after the STEP that led to an update of prices throughout the economy, and thirdly, uncertainty played an important role, which is what later turned back”.
From now on, a greater moderation of the cattle slaughter is expected and surely a more marked cut in the offers at the end of the year when the feedlots have been emptied. This reduction in the supply of cattle would deepen in 2024 because there will be fewer calves for fattening. And if the weather is good, the rearing will stretch the production processes and delay the appearance on the market of cattle to sell to the refrigerators.
2023-09-01 13:18:02
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