He meat consumption vaccine continued to rise during July, prior to the jump in prices that was evidenced since the last days of last month. Thus, hand in hand with a marked increase in production, it was close to the data of 2019, the last peak reached. Anyway, it is estimated that the jump in the value of the different cuts may impact the data for August.
According to information released by the Chamber of Meat Industry and Commerce (CICCRA), in the first seven months of the year the refrigeration industry produced 11.1% more than in the same period of 2022. “The growth of the work was the product of the severe drought that affected the main productive areas of the country,” they said from the entity. While, the study detailed that exports grew by 4.7%.
“With these figures, the apparent consumption of beef in our country would have totaled 1,410 million tons of bone-in beef, volume that would have been 12.7% above that registered in January-July 2022”, they explained from CICCRA.
“This is what caused beef to record price increases below the general level in the last year and, therefore, the per capita consumption of beef to recover, although it has not yet managed to exceed the level that it existed in the same period of 2019,” he explained.
So, in July the apparent consumption of beef reached 52 kilos per inhabitant per year, 8.5% above the average registered in July of last year (more than 4.1 kg/inhab/year). It was 0.2% below the data for 2019, the last peak, but it was above the average for 2020 (it was 50.9 kg/inhab/year), 2021 (48.7 kg/inhab/year) and 2022 (47.9 kg/inhab/year).
The consumption data for July occurred in a context in which that the prices of bovine meat grew again below the general rate of inflation. For example, the CPI in the GBA presented a monthly variation of 6.2%, while food climbed 5.2% and “meat and derivatives” rose 3.1%.
In the accumulated year-on-year, the gap was sustained: general inflation was 114.6% for the GBA, while food rose 117.8% and meat and derivatives, 87.2%.
“The increase in the supply of beef forced by the severe drought that affected the country in the last year translated into a real drop in the price of beef in the domestic market, a process in which the sharp contraction of prices also contributed. values paid in international markets. And this was what allowed the apparent consumption of beef to recover in the last twelve months”, they explained from CICCRA.
increases
However, in the last days of July and so far in August, the price of live stock registered strong increases that were transferred to the counter and that will boost the general inflation data this month. In fact, from CICCRA they pointed out that the “little steers had an increase of 34%”
A series of factors affect this variation, among which the impact of the implementation of the “corn dollar” at the end of last month, added to the devaluation of the official dollar and a lower supply, stands out.
In fact, as pointed out by the Consortium of Argentine Meat Exporters (ABC), “expectations for August are for a job with a downward trend, sustained only by the supply of light animals from feedlot establishments, accompanied by a supply of cows and steers in significant decline”.
In that context, The Government held meetings with the refrigerators to avoid further increases in the prices paid by consumers. Anyway, part of thisrearrangement” that was observed in the livestock market “they are already moving to counters”, they point out from the sector.
It is a fact that adds pressure to inflation. Camilo Tiscornia, from the firm C&T, pointed out that food “They are already rising to double digits: they increased by 11% in the third week of August against the same week in July.” A situation that, according to what he estimated, could result in a two-digit CPI this month.
Source: Ambito
