Monday, February 6

Meat II: high international prices offset drop in shipments

Regarding November, it ended with a turnover of US $ 260 million, which represents an increase of 7% compared to the previous month. In this regard, Mario Ravettino, president of the entity, explained: “although it is a trend that was attenuating, the improvement in the average values ​​has determined that the exported amount is sustained despite the drop in shipments.”

The drop in shipments responds to the restrictions imposed by the Government last May when it limited exports to put a brake on the continuous increase that meat showed in the domestic market. The truth is that although prices showed a slight deceleration for just a few months, as of November they had strong increases, even in that month the increases in butcher shops exceeded 11%. Thus, so far this year this basic consumer product for Argentines shows a year-on-year increase of over 75%.

For next year the Government proposes to continue limiting the shipments of seven cuts of popular consumption, such as barbecue, vacuum and matambre among others, while ensuring compliance with all international quotas and the release of exports of the so-called “Cow canned”, a product that is practically not consumed internally.

Within this framework, from the ABC Consortium they detail almost at the end of the year: “The greater participation of the tariff quotas, the relative fall of China and the increase in international prices – due to the particular situation in the beef market , given the closure to Brazilian meats imposed by China since the beginning of September and which continued until the middle of this month – they have reduced the impact of the restrictions applied on exports. The average tonnage decreased 15% in volume (slightly more than 11 thousand tons / month) compared to the first months of the current year, but had an improvement of 11% in its average in terms of value. It is evident that if this recovery could have been transferred to the average volumes verified at the end of 2021 and the beginning of next year, the total turnover of the sector would have expanded between 300 and 500 million dollars, without taking into account the expansionary factor that is observed. in the evolution of our competitors that could also have been taken advantage of ”.

In any case, the government’s strategy for next year will also be focused on ending the continuous tensions between the domestic and foreign markets. That is why, through the GanAr Plan, it seeks to promote the increase of the cattle herd and increase the slaughter weight per animal. Specifically, the objective is for Argentina to produce more meat and for this, credits for more than $ 100,000 million will be allocated.