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The Impact of Increasing Meat Prices and Decreased Consumption: Concerns of Merchants and the Need for Strategies to Overcome Commercialization Index

After six months, the different cuts of beef experienced an increase of between 20 and 25 percent. However, the improvement in income worries merchants about the levels of commercialization that are registered. “We try to carry out offers, promotions, we reduce our profit,” said Gabriela Fromaget.

In the last few days, after six months, the price of meat increased between 20 and 25 percent, which is causing concern in the sector as the retraction in consumption deepens.

In contact with LA OPINION, a reference in the field, Gabriela Fromaget, explained that the increases in meat are “vertiginous”, which is why they occur a few times a year. This makes the impact significant for consumers. In this case, and unlike other products that increase little by little, but week by week, the prices of the different cuts of beef had not increased for at least six months.

Specifically, Fromaget indicated that in the last week “meat increased between 20 and 25 percent” and justifies that “if there were no increases before, it is because demand is falling.”

Offering arguments about the causes that originate the increase in bovine meat, the interviewee pointed out: “It is due to a matter of season, at this time the grass is beginning to become scarce due to the drought. At the same time there was a rise generalization of costs, gasoline and the increase in the cost of transportation, services, is a whole chain”.

low consumption

The significant increase that meat had raises concern in the referents of the sector given that, since the beginning of the year, there has been a decrease in consumption. “Those of us who work in the commercialization of meat are very concerned because since the beginning of the year there has been a significant decline in consumption. However, the price of meat had to be adjusted because the situation was becoming unsustainable for merchants since there was no there was a profit margin.”

Stating that “food is very expensive”, Fromaget stated that beef and chicken and pork increased, “that is why workers have to juggle wages, ladening their daily diet with vegetables and unfortunately with a lot of flour. We should all be able to have a balanced diet but many cannot because purchasing power has been lost.”

As a counterpart, merchants must also think about strategies that allow them to overcome the commercialization index: “We try to carry out offers, promotions, we reduce our profit, we don’t know what else to do to increase sales levels”

Change of habits

The increases generate a change in the consumption habits of citizens as well as in the way of buying. In this regard, the trader consulted stated that: “Before, consumers asked me for half a kilo of minced meat, today they buy by amount and they ask me for 300 pesos of minced meat or they ask me for 1,000 pesos of pulp to make milanesas. Consumption turned a lot towards the most popular cuts such as minced meat, stew, cuts of common pulps. Roasting became a luxury because a lot of money is spent on a single meal. To this is added that fruit and vegetables also increase, bread also , and we are only talking about food, which is a basic necessity. People adapt to the situation they live in on a day-to-day basis because they don’t have enough.”

What will happen

Asked about the prospects, Fromaget said: “I have a hopeful look, I am a fighter like most Argentines who believes that the situation will change. It will cost us but we are going out, I bet on a change in the country.”

2023-08-06 10:09:00
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