Meat arrived at butcher shops with strong increases / EL DIA
The rise in meat prices on the eve of the holidays is hitting the greater La Plata area hard, adding pressure in a December that historically represents the best sales level of the year for the industry. In recent weeks, the value of hook meat that butchers in the region have to pay has increased from $5,900 per kilo to $9,000, an increase of $3,100, an increase of 52.5%.
The forecasts for the coming days worsen the outlook: suppliers expect that a kilo of half beef will rise to 10,000 US dollars, which would bring the total increase to 4,100 US dollars, i.e. 69.5% compared to the previous value. The situation is causing concern among traders as their accounts are debited at the time of year when they need the most sales volume to finish the season well.
Despite the sharp increase in costs, most butcher shops in the greater La Plata area decided to limit adjustments to the public. As industry operators and traders interviewed by this newspaper said, the transfer to the counter does not exceed 30% for the time being. The aim of the decision is to avoid a direct hit to consumers’ pockets that could curb demand just as purchases of slices for social gatherings and holiday tables are increasing.
“If we postpone everything, people stop buying. Today the margin is shrinking, but this is the only way to keep the movement,” they explain from butcher shops in Tolosa, Los Hornos, Berisso and in the north, where the flow of customers has increased in the last week before the holidays. However, they warn that it will be difficult to avoid new comments when the average value reaches $10,000.
Adding to the cost concerns is uncertainty about supplies in the second half of the month. Wholesalers in the region are warning that some refrigerators are starting to limit deliveries to avoid being left out of new lists. In butcher shops they fear that this tension will lead to further price increases and are rethinking their strategies to maintain prices without losing margins at the peak of demand.
Local tensions emerge in a national context of growth. In the first days of December, food prices rose 0.7%, driven mainly by meat, which rose almost 1% in just seven days. This comes from a report by consultancy LCG, which explains that meat and dairy products explain two-thirds of the inflation accumulated over the past two weeks.
The consultant also emphasized that half of the monthly fluctuations were due to the sharp increase in cuts of meat. In November alone, this item increased by 10%, and forecasts point to a further increase of up to 15% before the holidays. Factors putting pressure on the market include flooding in livestock areas, which led to a decline in supply, and larger export volumes.
Domestic consumption is also driving demand. According to recent data, Argentinians’ consumption increased from 45 kilos of beef per person per year to 49 kilos. This rebound adds pressure to a market that was already operating with lower supply. Experts warn that the increase in meat consumption has a direct impact on the cost of food, one of the items with the greatest impact on the general price index.
The LCG report also showed that seven of the 10 food categories examined saw an increase in the first week of December. Dairy products and eggs led the increase at 1.6%, followed by fruit (1.4%) and drinks and herbal teas (1%). Meat rose 0.8%, while sugar, baked goods, cereals and pasta rose 0.5%.
However, three items recorded declines: spices and other foods (-0.5%), vegetables (-0.7%) and oils (-0.9%).
Over the past four weeks, average food inflation reached 3.7% and end-to-end variation reached 4%, the highest in six months. For butchers in the region, the immediate challenge is to maintain sales and absorb some of the increase without losing customers. All in a December in which every marginal point defines the end of the year.
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