The fall in consumption of dairy and of meat in the first half of 2024, shows the magnitude of the economic crisis in which we live, where 1 in 5 Argentines is homeless (they cannot afford to buy the minimum amount of food). This economic crisis will bring a humanitarian crisis: hunger and poor nutrition lead to an increase in mortality, especially among children, and disease. It also reflects how the crisis spills over into society.
President Javier Gerardo Milei can now boast of having figures similar to those of the country’s golden period that he so often evokes, which goes from the generation of 1880 to the rise of the first degenerate prosecutor, in his words, Don Hipólito Yrigoyen. Annual per capita beef consumption this year will be lower than in 1920. That year consumption was 46.9%. This year it will be 45 kilos, much less than the historical average of almost 73 kilos, according to a report from the Rosario Stock Exchange. This is the lowest figure in 110 years.
Although it is true that beef consumption has been declining since the second half of the last century (due to health factors, such as medical advice to eat less beef), Argentina continues to be one of the countries that consumes the most meat. But in economic crises, consumption urgently migrates towards the consumption of cheaper proteins such as chicken or pork. This year, the sum of beef, poultry and pork consumption in Argentina would reach 105.7 kilos per inhabitant. This would mean a 9% drop compared to 2023, being the lowest consumption since 2011, with a consumption of 7 kilos less per inhabitant compared to the average of the last ten years (112.8 kilos).
The Rosario Stock Exchange indicates that the proportion of beef has fallen by 3.5 percentage points compared to 2023, reaching a historic low. This is the first time on record that the average Argentine inhabitant will consume the same amount of beef as chicken (around 44.5 kilos) in 2024. If the average gross income of the salaried sector is taken into account, it would be enough to buy 146.6 kilos of roast beef in 2024. This represents a 5.6% drop compared to 2023, when it was enough to buy 155.2 kilos. Compared to the average consumption of the last ten years, in 2024 each inhabitant would consume about 22 kilos less per person, with a drop of 13.3%.
At the same time, Dairy consumption also fell: 17.6% in the first half of 2024. According to the report prepared by the Institute for Argentine Agroindustrial Development, the data indicate that consumption in 2024 would be 156.3 liters per person compared to 194 liters per capita last year with which 2023 closed. In this scenario, the purchase of dairy products fell 17.3% in tons and 14.4% in liters in the first half of the year compared to the same period in 2023. These figures warn that, if this trend continues, 2024 will end with the lowest consumption in history. Cheeses, which represent 60% of dairy consumption, fell 18% year-on-year, with a drop of 11% in the first half. Desserts and flans fell by 53.4%, yogurts by 22.2%, butter by 16%, cream by 12%, and dulce de leche by 13.7%.
The collapse in food purchases fully reflects the serious data from the survey published by UNICEF Argentina this year. There it is reported that one million children go to bed without dinner. The number rises to one and a half million if those who skip a meal during the day are included. The adults living in these households who skip a meal rise to 4.5 million, in many cases because they prioritize their children being able to eat.
Other crisis figures include the Banco Provincia Consumer Index (IBP Consumption, carried out by the Economic Studies Department of the state bank and adjusted for inflation according to INDEC), which registered a 0.8% decrease in June compared to the same month in 2023. This index is based on total consumption measured through the bank’s commercial products. This consumption increased only 4.4% year-on-year despite the fact that the number of clients grew 31.7% in the same period. BAPRO’s virtual wallet has had a large growth in clients due to promotions in butcher shops, farms, and fishmongers (businesses in which consumption does not fall despite being essential for good nutrition). What is spent is not reflected in the increase in clientele, and the largest drop in consumption is recorded in the Metropolitan Region of Buenos Aires.
If you can’t pay for the food, obviously decreases the consumption of goods and services. Despite offers such as Hot Sale, helped by financial facilities granted by different banks, the collapse of consumption in general is observed. According to the Consumption Indicator of the Argentine Chamber of Commerce and Services (CAC), which measures the purchases of goods and services in households, in June there was a year-on-year drop of 9.8%. It is the worst decline since the pandemic. If it is estimated that the average nominal income per household was $ 1,188,000 in June, purchasing power fell by 21% in purchasing power. This implies that each household restructures its expenses.
The collapse in consumption is observed in all sectors compared to June 2023. Clothing and footwear fell by 26% year-on-year; recreation and culture, by 33.7%. Regarding transportation and vehicles, the decline was 12.4% year-on-year, which was mainly due to the 24% year-on-year drop in the number of car registrations. Rents and public services also fell by 5.7% year-on-year. There was lower electricity demand in businesses and industries. The service sectors (personal care, financial services, education and health) fell by 5.1% year-on-year, 2.2% below the pre-pandemic level.
The figures are more than eloquent when examining the results of the measures implemented by the government of La Libertad Avanza, which without pause and without haste, is leading this country to an unprecedented economic and social debacle.
Source: Ambito
