In the domestic market, what is expected in the short term is a logical price correction. The early slaughter, as a result of the drought, contributed to the containment of the values of live animals, but in the medium term a rise in values is expected due to the lower availability of stock. Local consumption continues to be the big question mark in the medium term, taking into account the weight exerted by the lower purchasing power of the population and the change in consumption habits where chicken and pork have gained ground on the Argentine table.
Meanwhile, regarding the international market, the scenario does not seem to be very simple either. In this regard, from the Rosario Livestock Market, Rosgan, they explain: “By 2023, it is expected that the production of beef will decrease slightly worldwide due to the economic recession that we will face for a large part of the year. On the supply side, the high production costs including basic inputs, labor and cost of capital will keep the productive sector on alert, imparting great caution when defining production programs”.
At the same time, “on the demand side, worldwide beef consumption is expected to experience a slight reduction this year. In Europe, beef consumption will record new drops; in a context of high inflation and strong increases in the cost of gas and energy, the consumer will have to go through a new year with a restricted budget.Likewise, a lower demand for imports is also expected for China than in 2022. This last fact, which, a priori, would constitute a pressure factor The bearish trend in prices cannot fail to be considered in the context of the uncertainty that prevails regarding the consequences of the recent release of sanitary controls announced by the Government, prior to the Lunar New Year festivities.Without a doubt, 2023 will not be the year in which we will see new records in the price of meat. Production around the world is looking for a new balance of costs and prices in line with the current restrictions,” they advance from l Rosario entity.
In short, the fact that consumption in China is not taking off is very bad news for the Argentine market, since around 90% of local exports are destined for this country. The fall in international prices and the high production costs will be other of the obstacles that the refrigeration sector will have to overcome during this 2023. A year with various challenges and especially with the drought that is going through the Argentine fields that puts more pressure on a key business in the contribution of foreign currency and employment generation.
