Córdoba: In July, beef production increased and the price of asado decreased

Beef production in Argentina reached 291,000 tons in July, according to the Livestock Monitor of the Agropecuary Foundation for Argentine Development (Fada). The report indicated an 11.6% increase compared to June, although at levels similar to the same month in 2023.

The survey shows that the price of calves rose 2.4% in August, while young steers registered an increase of 0.9%. Both increases are above the year-on-year inflation rate and put pressure on the costs of the livestock chain.

The young steer/corn ratio fell 10.1% month-on-month and stood at 14.2 kilograms (31.3 pounds) of corn per kilogram (2.2 pounds) of young steer. This adjustment impacted feedlot margins, reducing the profitability of fatteners.

Impact on domestic consumption and retail prices

Despite the decline in margins, feedlots closed July with a positive result, although reduced, at $6,098 per head. The replacement index fell to 0.9, reflecting a lower entry of animals compared to exits.

In the domestic market, the price of asado fell 0.1% in July, while chicken became 4.3% more expensive and pork fell 0.4%. Beef became cheaper compared to chicken, although not compared to pork, according to data from Fada's report.

The prices of all three meats remain above general inflation, indicating persistent pressure on the food basket. For consumers, the relief in the price of asado was slight compared to the increase in other proteins.

Meat exports and China's role in the market

In June, the exported value of meat stood at US$288 million, with a 6.1% monthly increase and a 1.9% year-on-year increase. However, after the 2023 record, a lower export volume is expected this year due to internal limitations.

China accounts for 59.9% of the exported volume and 43.2% of the value in the first half of the year. The cuts sent to that destination fell between 1.7% and 2.1% in August, although they are still 22.6% above 2023.