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Consumption plummeted in February and companies fear a crisis in the sector similar to that of 2002

Consumption plummeted in February and companies fear a crisis in the sector similar to that of 2002

He meat consumption collapsed in the first two months of the year and companies in the sector warn about the possibility of entering into a crisis similar to that of the exit from convertibility in 2002 if the liability liquefaction via inflation.

This was reported by the Chamber of Meat Industry and Commerce (CICCRA) in their monthly report for February, where they also asked the Government of Javier Milei that does not modify the export exchange rate, since that change “would automatically generate sharp increases in the price of animals both of export like internal consumptioninfluencing the index of inflation“.

“The shrinking of differential between the value of official exchange rate and the CCL produces a increase in treasury dollars from exportation and simultaneously prevents or reduces the possibility of foreign sales loophole“, they explained from the sector.

“This situation generates prices, mainly of cows to China, have fallen and as long as these conditions are maintained, they will not recover,” they noted in the report.

Furthermore, the Chamber estimated that the situation “will continue for a few months, and therefore, domestic market prices will not have the pressure of the export market and, therefore, will not increase above inflation.”

Meat Supermarket Prices Inflation

In the second month of the year the average price of the property sold in Cañuelas reached $1,440.7 per live kilo

Mariano Fuchila

Meat consumption fell 8% in the first two months of the year

In it first two months of the year apparent consumption of beef was equivalent to 349.1 thousand tons of beef with bone (tn r/c/h), according to CICCRA. In that case, the fall represented a 8.2% year-on-year. In this way, the moving average of the last twelve months of apparent consumption of beef was located at 51.7 kg/inhabitant/year in February 2024being just 0.1% below the average for February 2023.

For its part, the meat production sumo 504 thousand tons r/c/h in the first two months of the year. This represented a decrease of 8.1 thousand tons r/c/h in relation to the first two months of last year (-3.8% annually, corrected by the number of working days).

Record slaughter despite the drop in consumption and production

In February 2024 they worked 1,044 million head of cattle. In relation to the previous month, a recovery of 2.9% was recorded, when correcting the series by the number of working days. Meanwhile, in the interannual comparison, a drop of 0.8% (-8.6 thousand heads) was observed. However, it should be noted that in the “historical” perspective the level of sectoral activity last February was among the highest.

Meat: the price per kilo on the farm almost quadrupled

In the second month of the year the average price of the property sold in Cañuelas reached $1,440.7 per live kilo, in line with the acceleration that had been exhibited at the end of January. Thus, the average was 10.2% above the January average. The value of the live kilo multiplied by 3.8 between February 2023 and 2024.

In February, the rise in the price of standing property of 10.2% per month was combined with a 2% adjustment in the price of the official dollar in pesos. This caused the value of the live kilo in dollars to rise 8%, after the strong declines recorded in December and January, reaching US$1,726.

In February, the general level of consumer prices in Greater Buenos Aires once again slowed down the rate of increase, this time to 15% while increases in the prices of seasonal products meats and derivatives They advanced 9.1% in beef cuts and 11.3% in chicken cuts, both below the monthly average.

And in the last twelve months, average food prices quadrupled, where the category meats and derivatives rose just below, accumulating an increase of 288%. Now, the main beef cuts showed an average increase of 273.2% annual. For its part, the price of a box of hamburgers increased 298.3% annual. And the value of chicken increased 333.2% in twelve months.

Source: Ambito

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