The panorama of beef consumption experienced a drastic drop during the first months of the year, as revealed by the recent report released by Rosgan, the livestock market of the Rosario Stock Exchange.
Thus, in January and February, per capita consumption of beef decreased by 9.3%marking a significant decline compared to the previous two months.
In the previous report, meat consumption per capita had reached 48.5 kilos. Now, during the first two months of 2024, this indicator fell to 44 kilos. This decline occurred even though prices remained stable during that time.
Rosgan’s report highlights that this reduction in beef consumption is indicative of an “exhaustion” in the trendcharacterized by a constant decrease in consumption despite stable prices in real terms.
The details of the report
Although a 7% increase in beef consumption was recorded in 2023, reaching 52.4 kilos per person per year, this trend has not been maintained. On the contrary, the real price of meat, once the inflationary component has been discountedhas experienced an average decrease of 7% annually.
Rosgan warns that, Despite the stability of real beef prices, the apparent lower supply for the domestic market indicates that consumers are resisting further price increaseseven if this means limiting your beef intake.
The report also projects that, despite the seasonal rise in meat prices that typically occurs from March to June, total supply will be considerably lower this year due to drought conditions. However, prices are expected to remain relatively stable.
Competition from other cheaper meats, such as chicken and pork, has increased, gaining more and more share in total meat intake.
Regarding the decision of the Ministry of Commerce to reduce taxes on the import of food and basic products to reduce prices, Rosgan anticipates that although a direct impact on beef is not expected, Yes, the effect of a greater supply of other meats will be felt, especially pork, whose lower prices are generating strong competition on the counters.
Source: Ambito
