Beef consumption in Argentina had fallen to historic levels but now seems to show signs of recoveryaccording to a survey conducted by the consulting firm of specialist Andrés Costamagna.
This report revealed that during July there was an increase in sales in both local butcher shops and supermarkets.
This increase, close to 10% in the last two months, increased consumption to a rate of 51 kilos per person per year, but remains far from the historical record of almost 80 kilos per person per year.
However, the increase in demand did not come alone, as in July the average price of meat experienced a rise of 5%, a moderate movement compared to other sectors but which could intensify in the coming months.
According to Costamagna, the prices of the most premium cuts, such as flank steak, rump steak and loin, were the ones that rose the most. Meanwhile, roast beef, being less used for minced meat and export, maintained attractive offers on the market.
The consultant anticipates that meat prices could rise by 6% in the coming weeks, in what he describes as “a typical seasonal movement” that deepens as summer approaches.
When doing a price survey at the counter, people find the following prices: roast $6,499, flank steak $7,699, flank steak $6,999 and chorizos for $5,999. Among other less common options are the roast beef tapa for $6,499 and the skirt steak for $4,999.
Meanwhile, the porkwhich remained the cheapest, also showed a significant increase of 31% in recent weeks, but remains the cheapest option.
In terms of exports, the Argentine meatpacking industry exported 47.36 thousand tons of beef in June and registered a monthly recovery of 2.4% after three consecutive falls, according to the Chamber of Industry and Commerce of Meat and Derivatives of the Argentine Republic (CICCRA).
China remains the main destination, with a 14.9% increase in exports in June and reaching 70.1% of the total exported. But it is not all good news; the average price per ton exported to the Asian country fell by 19% annually, standing at 3,203 dollars.
This drop in average export prices was replicated in almost all destinations, with a 13.2% drop compared to June last year. Although total exports grew by 13.6% year-on-year in June, turnover fell by 1.4% due to the decrease in the average price.
For the sector, domestic consumption shows slow signs of recovery, but expectations of increases in beef and pork prices are consolidating.
The challenge for the local market is to balance this demand with the pressure on prices, especially in a context where exports also play a crucial role.
The meat industry is in a complex position, with the need to maintain competitiveness in international markets, while facing price adjustments.
Given current projections, the coming months will be crucial in determining how the price of meat stabilizes.
Source: Ambito
