Beef consumption in Argentina has fallen to its lowest level in 20 years due to rising prices, UNN reports, citing AP.
Details
Red meat consumption in Argentina — historically one of the world's largest beef consumers — has fallen to its lowest level in two decades amid austerity measures introduced by libertarian President Javier Milei, the publication writes.
As of April 2024, annual per capita beef consumption fell to 44.5 kilograms compared to 49.5 kilograms in the same month a year earlier, according to data from the Agricultural Development Fund of Argentina. In 2006, it stood at 63.4 kilograms per person.
"People are switching to cheaper proteins. They are eating pork, they are eating chicken," said entrepreneur Jorge Garcia.
Analysts attribute the decline to rising beef prices, a decrease in cattle supply, and weakening household purchasing power. The opening of the Argentine beef market to international trade has also brought domestic prices closer to global levels.
"Beef has moved into a completely different category of purchasing power. Workers' wages have lagged significantly behind," said Juampi Quintero, a meat distributor who estimated that consumption among his customers has dropped by more than half.
Since coming to power in December 2023, when annual inflation stood at 211%, Milei promised to get rid of what he called the "cancer of inflation" through an adjustment plan that included cuts equivalent to nearly a third of government spending, symbolized by the image of a chainsaw.
The government has managed to overcome the budget deficit and achieve a budget surplus — a rare result in Argentina's recent history — but the social cost of the austerity measures has drawn criticism.
Over several months, the Milei administration eliminated 13 ministries, fired about 30,000 civil servants, halted public works projects, and cut funding for key areas such as education, healthcare, and science, as well as reduced subsidies for essential services such as electricity, gas, water, and transport.
"This affects household income because families now have to pay more for services that were previously subsidized by the state," said economist Camilo Tiscornia. "As a result, they have less disposable income and must give up some more expensive goods, such as beef."
At the same time, household incomes have not grown at the same pace as beef prices, contributing to the decline in consumption.
According to the latest available data, the wages of registered workers rose by an average of 1.8% in February, compared to monthly inflation of 2.9%.
According to the Argentine Beef Promotion Institute, beef prices have risen by more than 60% over the past year, reaching an average of 18,500 pesos ($13 USD) per kilogram in Buenos Aires in May.
In July 2024, the Milei government reduced export duties on beef and poultry and abolished production quotas to stimulate sales abroad. The Argentine government said this week that beef exports rose by 54% in the first quarter compared to the previous year, reaching nearly 200,000 tons worth over $1 billion. The increase followed a U.S. decision earlier this year to expand the duty-free quota for Argentine beef due to a cattle shortage in America.