By: Patricio Ballesteros Ledesma
The volumes of beef exported by Argentina in the first nine months of the year are the highest in six decades. But it is not only a consequence of the constant and growing demand from the main external clients of local meat processing plants, it is also influenced by the drop in internal consumption to the lowest levels in 28 years.
That is why it is not surprising that consumers, that is, establishments that supply the domestic market, have problems maintaining their business, with the sudden decline in local demand, the rise in service rates and the virtual impossibility of continuing to increase prices. prices, even in view of the December holidays.
Although the October inflation data confirms a trend towards inflationary slowdown from the highs reached at the end of last year, the feeling on the street is that consumer purchasing power has not yet managed to recover, justified from the Rosario livestock market (Rosgan).
And he emphasizes that this is explained precisely by the changes that the distribution of household spending has undergone due to the rise in prices and rates of other items, which compete in a certain way with spending on food.
In the particular case of meat, according to the survey of retail prices carried out by the Institute for the Promotion of Argentine Beef, both beef, pork and poultry recorded price increases lower than inflation in the last 12 months. .
The price of chicken and pork breast They had an interannual variation of 176% and 173% in each case, while the average price of the different cuts of beef reached 149% year-on-year, with only 33% in the first ten months of this year.
It happens that, in this scenario of tight pockets, the consumer tends to replace some foods with lower value substitutes. This is precisely what has been observed in meat consumption, where the purchase ratio between a kilo of roast and a kilo of chicken is almost 3 to 1, while the ratio against pork breast fluctuates around 1, 5 kilo.
Therefore, despite being the protein whose price is furthest behind inflation, beef is the one with the greatest drop in terms of apparent consumption in the last year.
According to data published by the Secretary of Agriculture and Livestockbeef consumption fell in the first nine months of 2024 to an average of 47.3 kilos per capita, which represents an 11% drop in relation to the same period last year, against chicken consumption that in In the same period it contracted by less than 2% and pork consumption registered slight growth.
On the contrary, those that can direct part of their production to export, or those that are directly specialized in external sales of meat cuts, are going through a much better year than last year and with a historical record volume of shipments for this period.
As if in a reversal of the plot, the beef industry already allocates 30% of its production to exports, since between January and September almost 700 thousand tons of bone-in beef equivalent were shipped, which reflects a year-on-year growth in 8% and the highest volume recorded since 1967, according to the SAGPyA.
Thus, beef exports are on track to close the year at record levels, according to Rosgan, which also highlights the growing demand from traditional markets (China, Israel, the United States), the addition of new ones with better prices (Mexico) , as well as doubling sales of valuable Hilton cuts for Europe.
We cannot speak of a revenge of the livestock activity and the meat industry in general, because not everyone participates in the export business, but an increasingly large portion of the slaughtered meat is being processed for a diversified outlet to the world, beyond the fact that 70% of the total current tonnage is destined for the Chinese market.
There is clearly a change in the destination of production, since according to the Chamber of Industry and Commerce of Meat and Derivativesthe associated slaughterhouses slaughtered 10,225,000 head of cattle until September, which represents an interannual drop of 7.2% compared to a 2023 affected by drought, but higher than the average for the 2017-2022 period, which was 9.9 million of heads.
Consequently, accumulated production also decreased to reach 2.33 million tons of beef with bone (-6.4%) but, as internal demand contracted sharply (-11% per capita consumption), a larger portion of cuts meat could be destined for export markets (+7.8%).
Specifically, according to official information from the Ministry of Economy, external sales of beef accumulated a volume of 699,987 tons of bone-in beef equivalent until September for US$2,122 million, which represents the highest record in the last 57 years.
The data also reflects that of the 48 export markets, considering the European Union as one, the increase in shipments to United States 46%, Chile 21%, Israel 11%, EU 7% and China 4%.
In addition, a new market such as Mexico is positioned in the ranking, which already occupies sixth place, followed by Brazil, Russia, Canada and Malaysia. These 10 markets accumulated 99% of volume shipments in the period analyzed.
Regarding exported products, 16% were chilled cuts and the rest frozen cuts with and without bone. Last year, chilled cuts were exported to 31 destinations and so far in 2024, only one has been added, while sales of frozen cuts expanded from 31 to 44 destinations.
Right then, let’s have a butcher’s at this little ditty about Argentine beef.
cracks knuckles and adjusts imaginary spectacles
So, apparently, Argentina’s shipping out more beef than a dodgy kebab shop after closing time. We’re talking sixty years worth of record-breaking exports! Now, you might think, "Cor blimey, that’s brilliant for Argentina!", and you’d be… partially right.
See, the Argentinians are eating less beef than a vegan on a hunger strike. Apparently, their wallets are thinner than a supermodel’s patience at a buffet. Prices are through the roof, and even with chicken and pork playing second fiddle price-wise, folks are choosing those cheaper options. It’s a meat-eat-meat world out there, and right now, Argentinians are feeling more like vegetarians.
The good news? The export market is lapping it up! China, the US, even bloody Mexico are getting their hands on Argentine steaks. It’s a global carnivore fiesta!
The bad news? This isn’t some underdog story. Not everyone’s benefiting here.
Imagine a butcher shop, right? One guy owns the place, the other chops the meat. The owner’s laughing all the way to the bank with this export boom, but the chopper? He’s stuck with the scraps. Prices are up, demand is down, and he’s likely looking at tighter trousers than a politician telling porkies.
This whole situation is a bit like watching a three-legged dog win a race. Impressive, sure, but you can’t help but feel a bit sorry for the poor mutt. And while Argentina’s export numbers soar, you’ve got to wonder, who’s actually getting the good steak here? Why, the bloody foreigners, that’s who!
Right, I’m off for a vegetarian curry. It’s cheaper and at least I don’t have to worry about someone else stealing my bloody steak.
leans back with a wry smile
Cheers.
– What factors are driving the contrasting trends of record-high beef exports and declining domestic consumption in Argentina?
## Interview: A Look at Argentina’s Beef Industry
**(Host):** Welcome back to the show. Today we’re diving into the world of Argentine beef, a culinary staple known for its quality and flavour. Joining us is [Guest Name], an expert in the Argentine agricultural market. [Guest Name], thanks for being here.
**(Guest):** It’s my pleasure to discuss this important topic.
**(Host):** Let’s get straight to it.
Recent reports indicate Argentina is experiencing a fascinating paradox in its beef industry. Could you speak to that?
**(Guest):** Absolutely. We’re seeing record-breaking beef exports in Argentina, the highest in six decades. However, this surge in exports coincides with a significant drop in domestic beef consumption, reaching its lowest point in 28 years.
**(Host):** That’s quite a contrast! What factors are driving these trends?
**(Guest):** On the export front,
rising global demand, particularly from markets like China, Israel and the United States, is fueling the boom.
Domestically, the story is different. High inflation and a decrease in purchasing power are leading Argentinians to seek more affordable protein sources, like chicken and pork.
**(Host):** So, basically, people are tightening their belts, and beef is the first to go?
**(Guest):** Precisely.
Although beef prices haven’t risen as sharply as other meats, consumers are opting for cheaper alternatives. This is reflected in the sharp drop in per capita beef consumption, about 11% lower than last year.
**(Host):** What does this mean for the future of Argentina’s beef industry?
**(Guest):** It’s a complex picture. While the export market is booming, the domestic market is struggling. This highlights the importance of diversification and exploring new markets.
Argentina’s beef industry is adapting by focusing on high-value cuts targeted toward international consumers willing to pay a premium for Argentine quality.
**(Host):** This sounds like a significant shift in strategy. Does it create winners and losers within the industry?
**(Guest):** Undoubtedly.
Those producers who can tap into the export market are thriving, while those who depend primarily on the domestic market are facing tougher times. It underscores the importance of government support and policies that promote innovation and competitiveness.
**(Host):**
Thank you, [Guest Name], for shedding light on this complex landscape. It’s clear that Argentina’s beef industry is navigating choppy waters, but there is also tremendous opportunity on the horizon.
**(Guest):** My pleasure. It’s a compelling story, and its future hinges on adaptability and innovation.
