In the same period, on the other hand, the main beef substitutes showed higher variations. According to the IPCVA report, the price of fresh chicken climbed 3.6% monthly in August and accumulated a rise of 93.8% year-on-year (well above the 78.5% headline inflation). In the case of pork, its monthly increase accelerated, by increasing 8.9% in August compared to July and thus adding increases of 78.6% compared to the same month of 2021.
“In the last twelve months, beef had a significantly lower relative price (-14.9%) than that registered a year ago compared to poultry meat: in August 2021, 3.58 kilograms of whole fresh chicken could be purchased with a kilogram of roast and in the last month of August, the purchase capacity of the beef roast cut in terms of poultry meat was reduced to 3.04 kilograms”, analyzed the IPCVA in its monthly report
“Furthermore, in front to the cut of pork breast pork, roast beef showed a moderately lower relative price, (-7.7%)and the purchasing power of beef was reduced from 1.47 to 1.35 kilograms of pork comparing the months of August 2021 and 2022,” the study added.
Analysis
In its usual monthly report in which the evolution of the price of meat is analyzed, the Center for Political Economy of Argentina (CEPA) pointed out that “making a chronology of what happened in the last two years, it is possible to mention that After increases of over 75% in beef counter prices in 2020, the first half of 2021 began with new increases that totaled another 35% increase.”
“In this situation, The National Government took a series of measures to stop the generalized increases in the value chain. These measures made it possible to cut the upward trend and, between July and October 2021, prices fell 3%. However, November and December, months in which consumption usually increases, again showed significant increases in the price of meat, averaging 11% and 10%, respectively. These increases remain more moderate, during the first five months of the year 2022, accumulating an increase of 35%.
From then on, the slowdown in the price of beef was accentuated. In fact, as the agricultural consultant Javier Preciado Patiño detailed on his Twitter account, since May the value of the cuts surveyed by the INDEC rose 0.7% on average, against an accumulated 25% of the IPC.
Consumption
Beyond the fact that in recent months the price of beef presented rises well below the levels of general inflation, domestic consumption does not pick up and continues at historical lows.
In fact, according to the report prepared by the Chamber of Industry and Commerce of Meats (CICCRA), in terms of per capita consumption, In August, the twelve-month moving average was 47 kilos/year.. In the year-on-year comparison, it is 0.4% compared to the same month of 2021 and it turned out to be 7.6% lower than in August 2019.
Meanwhile, in terms of production, during the first eight months there was a growth of 4.5% in tons of bone-in beef. While exports grew 9.4% compared to the same period in 2021. Therefore, internal absorption rose in the order of 2.6%.
Source: Ambito
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