As a result of rising production, lower international demand, the increase in real wages, and the sharp drop in inflation, domestic beef consumption showed an 11.8% increase compared to the first half of last year.
Beef consumption showed an 11.8% increase compared to the first half of last year
As a result of rising production, lower international demand, the increase in real wages, and the sharp drop in inflation, domestic beef consumption showed an 11.8% increase compared to the first half of last year.
After the severe economic crisis inherited from Kirchnerism, which caused meat consumption to fall during 2023, the beginning of this year shows strong signs of recovery thanks to the stabilization of the economy achieved by the government of Javier Milei.
According to data from the Chamber of the Meat Industry and Trade and By-products of the Argentine Republic (CICCRA), in the first six months of the year, 1.518 million metric tons (3.347 million pounds) of bone-in beef were produced, representing a 1.8% increase compared to the same period in 2023.
Meanwhile, beef exports experienced a 21.1% decrease compared to the January-June period of the previous year. "Basically, the reduction in exports was explained by lower demand from China, which more than offset the increase in sales to relevant destinations such as Israel, the U.S., Germany, and the Netherlands, among many others," the chamber explained in its most recent report.
In June, per capita beef consumption reached 50.1 kilograms (110.5 pounds) per year, based on the moving average of the last twelve months. This figure represents a 5.2% increase compared to the same month of the previous year and is close to the levels recorded in 2021, when consumption was 49.3 kilograms (108.7 pounds) per person per year.
The decline in beef demand was accompanied by a sharp increase in chicken consumption. This is largely explained by the price difference: with the same amount it costs to buy one kilogram (2.2 pounds) of beef, it is possible to purchase three kilograms (6.6 pounds) of chicken or two kilograms (4.4 pounds) of pork.
According to data published by Indec in June, the average prices per kilogram (2.2 pounds) were as follows: asado, $10,973; ground beef, $6,803; rump, $14,323; and sirloin, $13,742. In contrast, whole chicken was sold at $3,709 per kilogram (2.2 pounds).