During the same month, meat substitutes such as chicken showed an increase of 4.9%. In this way, the price of roast meat in relation to chicken remained practically unchanged. “In year-on-year terms, the variations of some cuts continue to be above the general level of prices in the economy (+50.9% approximately) while others, of great internal consumption, managed to remain below the average, especially due to the high point of comparison that leaves January 2021: asado (48.7%), empty (48.9%) matambre (46.5%), “the report detailed.
In January, the weather was a determining factor in the drop in supply entering the Liniers market, firstly due to the high temperatures together with the drought and later, due to the rains that were recorded in a large livestock area. “This conjunction of facts determined an offer below the usual for the start of the year. In January 2022, while inflation reaches a little over 50%, the counter price rises to 54.5% and 55.2% in tax authorities”.
As of February 1, the upward trend in the price of live cattle is confirmed. On the 16th of this month, the price reached $286.80 for the 300/390 kg steer, that is, a 14.2% increase compared to the price on January 28, 2021.
Was there less supply? Although the data is partial, as of February 16, 2022, a recomposition of heads traded in the Liniers Market is observed (in values similar to the same period in 2021 or January of that same year), modifying the behavior observed in January 2022, where supply had actually been reduced.
For CEPA, four reasons motivate the increase in meat:
1. Little transparency in the supply and demand of the Liniers hacienda market. The purchase value at extremely high levels and in such a short time by consignees, well above the equilibrium price of the previous days, suggests that the objective was aimed at “recomposing prices” (according to the definitions of agents of the sector) and avoid pesification of their income.
two. lower offer: in the last three months, the offer appears as one of the main problems in the increase of the price of the steer. Indeed, the number of heads entering the Liniers market during the months of November and December is greater than the previous months (+23%). In January the behavior is different. The weather was a determining factor in the drop in supply entering the Liniers market, first due to the high temperatures together with the drought and then due to the rains that were recorded in a large livestock area. This conjunction of facts determined an offer below the usual for a start of the year.
3. Inflation rising: during the festive months of November and December, prices increase again, once again widening the difference to 32% at the farm and 29% at the counter. In January 2022, while inflation reaches just over 50%, the price at the counter amounts to 54.5% and 55.2% at the Treasury.
Four. Concentration: The ten largest refrigeration companies and groups in Argentina processed 3.56 million heads, with a participation level of 27% of the national total. More than a third of the slaughter in Argentina is concentrated in a small group of refrigerators, which marks a significant level of concentration in a fundamental link in the chain made up of: breeding, fattening, slaughter, deposition and retail sale.
Source: Ambito
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