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They expect increases in the price of meat after the increases in steers and heifers

2023-01-26T02:57:02.361Z


In the Mercado de Cañuelas there were increases of 30 percent and they affirm that in butcher shops and supermarkets there may be jumps of 300 pesos per kilo.


The price of beef could show rises of between 300 and 400 pesos per kilo in the coming days, in supermarket gondolas as well as in butcher shop counters.

It would be an expected consequence after the increase that is already being observed in the value of the farm standing for slaughter, according to different sources from the meat chain.

In the last days, in the Cañuelas Farm Market,

jumps of up to 30 percent in the price of some categories

were observed , especially for animals of good quality and finish, which is not what is abundant at this time.

On Wednesday morning, steers and heifers achieved current prices of 450 pesos per kilo and ceilings of 465, while steers reached current prices of 420 pesos.

This is a rebound that everyone in the sector was already expecting, given that the price of the farm for slaughter, and also

of the meat on the counter, have been losing ground against inflation for a year

.

During 2022, according to the Institute for the Promotion of Beef (Ipcva), the average price of meat increased by 42 percent while inflation for food was 94 percent.

For its part, standing farms lost 40 percent of their real value in the last eight months.

The oversupply continues but the demand from China rebounded

The explanation for this phenomenon, offered by different specialists in the livestock sector, is that

due to the drought the producers needed to remove the animals from their fields

and an oversupply was generated.

In addition, in the last months of 2022 the external market was affected by the restrictions imposed by China due to the outbreaks of Covid-19, for which reason the demand was weakened.

The first factor continues in force, despite the rains over the weekend.

The fields are with little grass and cage trucks continue to arrive in quantity at markets and livestock fairs in the country.

But in the second aspect, important changes can be observed that may partly explain the anticipated rebound in farm values.

As explained by the analyst Ignacio Iriarte, after the release of sanitary restrictions,

China is already demanding large quantities of meat again

, and the rest of the international market is reacting accordingly.

Hilton quota prices have risen 15 percent in the past month

and are projected to reach $11,000-12,000 a tonne in the near term.

So, exporters, although they never withdrew from the local beef market, are participating more intensely and this means that, despite the abundance of supply, the pressure of demand is felt more strongly.

It will be necessary to closely follow the labels in the gondola to see if this jump in the price of the farm is transferred proportionally to the price to the public, and if consumers are in a position to validate new values.

In this context, it will be necessary to see if the consumption of red meat falls again, which had been recovering after reaching average floors of 47 kilos per year per inhabitant in mid-2022, 

look also

Agriculture exported USD 55,216.3 million in 2022 although shipments fell by 6.1%

Faced with the recomposition of prices, meat producers warn that they are not responsible for the increases on the counter

Source: clarin

All news articles on 2023-01-26

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