The plummet in purchasing power in Argentina has resulted in the sharpest decline in the country’s beef consumption in three decades. According to data from the Argentine Chamber of Meats and Derivatives Industry and Commerce (CICCRA), beef consumption in the first quarter of the year dropped by 17.6% compared to the same period in 2023. This marks the largest decrease recorded by CICCRA for any quarter in thirty years.
In March alone, per capita beef consumption in Argentina was 18.5% lower than in the same month the previous year, at 42.6kg. Miguel Schiariti, president of CICCRA, highlighted that the decrease in salaries’ value amidst the country’s high inflation was a key factor in this decline. However, he pointed out that the figures for the first quarter of 2023 were skewed by a drought, causing meat companies to move cattle into feedlots early and increase slaughtering.
The oversupply of beef resulting from last year’s drought led to prices not keeping pace with inflation in the first ten months of 2023. This surplus prompted consumers to increase their beef consumption during that period, pushing per capita consumption to over 52kg. Schiariti explained, “Without the oversupply from last year’s drought, consumption per capita would have dropped by less than eight kilos a year instead of ten.”
In March, the general inflation rate in Argentina reached 11%, with prices rising by more than 51% since December and a staggering 287.9% over the previous twelve months. On the food front, prices for non-alcoholic beverages surged by 10.5% in March compared to February, and increased by 48.9% since December and 308.3% over twelve months. Specifically for beef, prices rose by 9.5% from February, with a 278% jump since March 2023, albeit below general food inflation.
Schiariti called on the Argentinian government to reassess export fees to boost the sector’s competitiveness and speed up the recovery of cattle numbers through tailored credit lines. He emphasized the need for the government to support meat production and exports without intervention, urging for the acceleration of cattle numbers lost during the drought to meet domestic and international demand.
To conclude, Schiariti stressed the importance of increasing meat exports to stabilize domestic prices and encourage consumption. By enhancing production for both local and foreign markets, prices can remain more affordable, thus stimulating beef consumption once again in Argentina.
