After the devaluation of August and the acceleration in the price of the Treasury, the Argentina still have one beef cheaper than in Uruguay and Chile.
On the other hand, local meat is located 10%-11% above what it is worth in Brazil, leading exporter and probably more competitive (lower costs) in terms of beef and beef prices worldwide and 40% more expensive than in Paraguayan.
Based on prices collected online from supermarkets in the 5 countries in the fourth week of August, the average price for a basket of 8 medium/high quality cuts was $4,295 per kilo in Argentina.$3,857 per kilo in Brazil, $2,561 in Paraguay, $4,864 in Uruguay and $5,032 in Chile.
In order to find out if the price consumers pay for beef in Argentina is high or low compared to neighboring countries, Juan Manuel Garzón and Tobias Lucero, from Ieral, from Fundación Mediterránea carried out a study where surveyed prices of different beef cuts and analyzed official statistical information from Argentina, Brazil, Uruguay, Paraguay and Chile.
The study was carried out to analyze the impact of rising inflation in Argentina, which leaves “little room to continue adjusting the price of meat”, especially considering the importance of meat in their diet for Argentines.
On the other hand, the report maintains that conclusions can be drawn from sectoral public policy, which “has long included different interventions on foreign trade (export rights, cuts that cannot be exported), with the aim of containing ( keep low?) domestic meat prices”.
In addition, the authors of the document understand that the data could be beneficial for the farm and meat chain itself, since it needs to have references regarding how local prices are compared to those in neighboring markets.
From IERAL, they conclude that “there should not be large gaps between countries, particularly with those that actively operate in foreign trade and, therefore, must ensure that the prices of livestock (the main raw material for meat) remain competitive at a global level.” global.
The paper covered two separate analyses. A second comparison with an online price survey in supermarkets in the 5 countries to be compared, where 21 supermarkets and more than 180 prices of beef cuts were surveyed; and another with prices to July for a set of cuts in three countries based on official information: Argentina, Uruguay and Chile, using statistical bases from official organizations (or mixed institutions, in the case of the IPCVA in Argentina).
From the studies to July with official information, with respect to Uruguay, 12 cuts of beef at the final consumer level were compared (the same are chosen for both countries) and their values for the month of July; It is found that the average price of this basket was USD 9.5 per kilo in Uruguay and USD 7.1 per kilo in Argentina (in both cases at the official exchange rate, if blue was used the gap would increase significantly), that is, on average, meat in Argentina was 25% below meat in Uruguay as of July.
Meanwhile, the comparison between Chile and Argentina is based on prices from public agencies and representative entities of the sector, including 13 final consumer level beef cuts (similar for both countries), and values for the month of July; It is found that the average price of this basket was USD 12.3 per kilo in the neighboring country, while USD 8.4 per kilo in Argentina. For the reference month, bovine meat was 31.2% cheaper in Argentina than in Chile.
Source: Ambito
