Although it was the animal protein that least accompanied the inflation, with an average of 47,2 kilos per inhabitant per year, Beef consumption has collapsed to historic levels and is already the worst in the last 28 years.
The data was provided by the Chamber of Industry and Commerce of Meat and Derivatives (Ciccra) which also pointed out that, in this average of January-October of this year, it would have been 11.2% below the same period in 2023. As he commented Miguel Schiariti, owner of the entity, THE NATION “At least since 1996, there has not been such a low consumption of beef.”
“Despite being far behind in price by at least 50%, What is happening with consumption is a catastrophe. And the explanation for the fall is simple: beef was replaced by chicken and pork because with an average value of a kilo of beef can buy three kilos of chicken or two and a half kilos of pork and, when the economic situation and purchasing power is weakened, this happens and “The one who decides is the pocket.” he detailed.
In this sense, he pointed out that Although the consumption of beef falls and that of other meats increases, where Argentina continues to be in second place as a consumer of animal proteinl in the world: the first is the United States with 224 kilos, where 30 of that total is beef and the second is Argentina with 114 kilos of animal protein meat, of which 47.2 is beef protein.
For Schiariti, the explanation for the drop is simple: “beef was replaced by chicken and pork because with an average value of one kilo of beef you can buy three kilos of chicken or two and a half kilos of pork and, “When the economic situation and purchasing power is weakened, this happens and it is the pocketbook that decides” Ciccra
According to the monthly document prepared by the Institute for the Promotion of Argentine Beef (Ipcva), the price of chicken and breast from scratch had an interannual variation of 176% and 173% respectively, while beef reached 149%, with only 33% from January to October of this year. “The prices of the different cuts of beef have registered a variation of 1% last October compared to the previous month. An increase of 33% in the first ten months of the year and a year-on-year variation is 149%,” the report indicated.
In this scenario, Schiariti does not have very good omens in the near future, although some free-range fatteners are thinking that next December there will be a reaction in the price. For the manager, There will not be a very strong jump in value on that date because the consumer still does not feel an increase in their income. “The increases in salaries were not general, It only occurred in those agreements that had joint ventures. But More than 50% of the registered work are public employees or those who depend on the provincial or municipal states and they have not had an increase in their salaries,” he said.
Furthermore, he stated that before The incidence of tariffs on people’s average income was 2% and currently that is 4 to 4.5%. “So, the drop in the prices of some products still has no impact because the consumer/user begins to spend before having spent. This is one of the reasons why The growth in production and the very small increase in income of a large part of the population has not yet been felt,” he considered.
Among foods, meats and derivatives were those that registered the smallest increase in the month, equaling the average for foods (0.9%). ANDOn average, the prices of the main beef cuts surveyed rose 0.4% in the month.”, described.
The January-October average of this year was 11.2% below the same period in 2023Ciccra
“At Ciccra we believe that The increases will only occur in February and March. In the first quarter of the year, the improvement in people’s income will begin to be seen more clearly. And then yes, given the lack of finance, prices are going to increase significantly,” he added.
Sergio Pedace, vice president of the Argentine Chamber of Matarifes and Suppliers (Camya) agreed that the recovery in the value of beef at the end of the year “It will be little, not great things.” For the specialist, “Obviously, The Argentine pocket can be fixed a little and that will improve somewhat, not much more” said and stressed that on the other hand, the price of meat is not linked to general inflation, but with the supply and demand relationship, and more tied to the dollar and external demand. “That’s what we see,” stood out.
Sergio Pedace, vice president of the Argentine Chamber of Slaughterers and Suppliers (Camya) agreed that the recovery in the value of beef at the end of the year “will be little, not great things” DIEGO SPIVACOW / AFV
Exports are going in another direction and, as the year progresses, ““The recovery of beef sales abroad is consolidated.” “In the first nine months of the year, beef exports They amounted to 471.9 thousand tons of product weight (beef with bone)y They reached a new all-time high. In year-on-year terms, the increase was 12.1% (+51.06 thousand tons pp). Of the total exported, 82.8% was made up of frozen cuts, 16.5% with fresh cuts and 0.71% with processed meats. The average price per ton of product weight reached US$4,398. reducing the fall compared to the same period last year to 7.6% (US$361 per ton pp),” Ciccra explained.
With a total turnover equivalent to US$2,075.3 million, it was the recovery of more exported tons that compensated for the contraction in the average price, generating 3.6% more income in the first nine months of 2024 (more than US$72, 66 million) AFIP
Along these lines, the entity assured that “The decrease in the average price paid by Chinese buyers is the one that contributed the most to the fall (-13.6% annually; US$3,235 per ton pp), given the high relative weight that sales to this country have over total exports.”
Finally, With a total turnover equivalent to US$2,075.3 million, it was the recovery of more exported tons that compensated for the contraction in the average price, generating 3.6% more income in the first nine months of 2024 (more than US$72, 66 million). “Frozen cuts explained 67.9% of total income, chilled cuts contributed 31.7% and processed meats did the same with the remaining 0.4%,” the Ciccra report closed.
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Ah, let’s take a butcher’s—pun intended—at this rather meaty article, shall we? Now, if you thought beef was just a protein option, you’re clearly not paying attention! In Argentina, beef has become the dramatic lead in a tragic soap opera of inflation and poultry uprising. Yep, it seems like beef consumption has plummeted to historic lows, reaching the worst levels we’ve seen in nearly three decades! So what’s going on? Has Argentina decided to join the Chicken Little brigade?
According to the Chamber of Industry and Commerce of Meat and Derivatives (Ciccra)—you know, the folks who really know their cuts—beef is now being overshadowed by our feathered friends and their piggy counterparts. I mean, look at it: one kilo of beef can buy you three times as much chicken or two and a half times as much pork. It’s like a bloody episode of “Who Wants to Be a Millionaire?” where only the chicken leaves with the cash!
Miguel Schiariti, the person at the helm over at Ciccra, smartly remarked that the situation is a disaster. And when your beef is less popular than a cold cuppa tea in a British pub, you’ve got to face facts. Just like my grandma’s Sunday roast—after the first plate, nobody asks for seconds.
And here’s a fun twist: although beef’s face isn’t in vogue anymore, Argentina still ranks second in the world for animal protein consumption! Who knew a country that’s usually busy tangoing its way through steak dinners would find itself cha-cha-cha-ing over to chicken nuggets instead? That’s right, folks. The United States sits unhindered at number one, with its citizens consuming a staggering 224 kilos of animal protein each year. I’d love to see the grocery list for that!
But let’s not get too gloomy—there’s some actual economic magic happening here, albeit a tad confusing. The beef price is inflating at only 149% over the year while chicken’s strutting in at a hot 176%—so let’s call it a beef break! However, many consumers are starting their month before their money has arrived. It’s a crowd-pleaser of a plot twist: people are spending from thin air. Can someone send in the economics therapist, please?
And of course, while we’re all holding our breath, waiting to see if Christmas brings a price rebound, all indications suggest that the beef-loving crowd may have to embrace the new poultry overlords for a bit longer. Note to self—start learning chicken recipes!
In a rather flowery conclusion, I should note that this beefy tale has some exporting charm as well, with exports hitting a peak but at a discount. It’s like sending your best dress to the party but getting back compliments about your neighbor’s shirt. Tragic!
And there we have it, folks—a deliciously complicated tale of inflation, protein shifts, and the stark realization that your pocketbook is the real meat of the matter. Remember, if life gives you lemons, make lemonade. But if life gives you chicken, well, better learn how to fry it up real nice!
How is the economic situation in Argentina impacting consumer choices for protein sources?
For seconds.
This drop in beef consumption isn’t just a minor blip; it’s a seismic shift in the dietary landscape of Argentina, where the country has long held a rich tradition of beef consumption. Schiariti emphasizes that since 1996, we haven’t seen such a low consumption rate. Just think about it: chicken and pork are taking the spotlight while beef is being left out in the cold, hardly even getting a cameo.
The crunch in purchasing power and skyrocketing prices have forced consumers to reassess their protein sources. With economic pressures, people are opting for the more affordable poultry and pork options. Schiariti’s assertion that “the one who decides is the pocket” rings true; as wallets tighten, tastes inevitably shift.
But it’s not just about personal choices; it’s a broader economic circumstance impacting the entire market. While chicken breast and other meats have seen double-digit inflation, beef has lagged behind, causing even more concern for Argentinian cattle producers. Despite the national dietary shift, Argentina still ranks impressively as the second-highest consumer of animal protein globally, just behind the United States. However, that silver lining does little to cushion the blow felt by the beef sector.
As we look to the near future, things aren’t shaping up to improve just yet. Experts predict only modest price increases and a slow recovery for beef. The recovery hoped for after the holiday season might still be dampened by stagnant wages and the significant number of public employees not seeing salary increases. On top of that, the tax burden on average income has doubled, further weighing down consumer spending capacity.
With exports, however, the equation seems a bit different. The exports of frozen beef cuts are flourishing even amid local consumption woes. As exports rose to an all-time high, it signals that international demand is still relatively strong, despite declining prices from key buyers like China. While the local market grapples with an identity crisis over beef consumption, our beef industry is flexing its muscles on the global stage.
All things considered, this complex tale brings us back to a familiar saying: “What goes up must come down,” but in the world of Argentinian beef, it might just mean scrambling for the next best protein source in the wake of changing economic tides. So, while the beef industry does its best to offer discounts to entice old consumers back, this chapter has opened up a new narrative where chicken may just be the golden child receiving all the attention and the steak—well, it’s in a bit of a pickle.
