The entities that make up the Link table have warned in recent days of a complex scenario for livestockfrom a dry guy who doesn’t forgive and a level of contributions from the farm that He hasn’t recovered for months.
In harmony with the Argentine Rural Society, who warned of a “hot” sector., Argentine rural confederations (CRA) issued a statement warning of price lag in the sector and warns that, in 2023 the outlook for the business will be very complicated and there may be a shortage of supply.
“This combination of low international prices, coupled with low purchasing power due to low wages and high inflation; and drought can put an end to the price of fat and cause the logical rearrangement of the price, when it is delayed and the supply decreases”, underlined the body chaired by Jorge Chemes.
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In the first half of the year, the price of steers yes heifers consumption evolved in livestock auctions, but then entered a plateau from which it could not yet get out.
“The Standing Farm lowered its nominal prices which have decreased with respect to inflation,” they highlighted.
In this context, they argued that livestock production was also affected by a slowdown in the economy of the main purchasing countries and by the deterioration of internal variables, such as inflation, exchange rates and interest rates. They also noticed it Government interventions, such as restrictions on beef exports, have distorted the market.
👉 Again, highlight that the producer is not a price maker.
👉 The prospects for 2023 are very complicated for production #livestock and there may be a shortage of supply.
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— CRA (@CRAprensa) December 28, 2022
UNDER INFLATION
“The price of meat it has remained below annual inflation and the price the producer receives is visibly lower”, they explained. The price of livestock does not stop falling and only lost 3.7% in November.
This scenario is not reflected in the counters butcherswith values that remain stable or record slight increases, which did not exceed 1.5% per month.
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“It should be emphasized that, in the context of an inflationary rate of our economy close to 100% per year, beef increased by about 42% between December 2022 and the same month of 2021,” they calculated.
The body has criticized the official decision to stop the export of cuts of beef and argued that it has not produced the desired results. “In this inflationary context and despite the stagnation of its price, the consumption of meat continues to decline”, they highlighted. And they added: “The problem was and is the loss of purchasing power of our currency, the producer is not a price maker”
