Why Brazil’s Beef is Cheaper Than Argentina’s Despite Being the World’s Leading Exporter: Study

He Ieral carried out the survey in online supermarket stores during the third week of May, for the purposes of incorporating Brazil in the comparison of bovine meat prices in the region, due to the lack of public statistics on the matter in that nation.

In this measurement, which reached 16 supermarkets and more than 150 prices of bovine cuts, the value of a basket of 8 cuts of medium and high quality registered $2,687 per kilo in Argentina, $2,545 in Brazil, $3,174 in Uruguay and $3,555 in Chile.

“These prices in online supermarket stores reveal that the country continues to have, as in previous measurements, cheaper beef than in Uruguay and Chile and that it is located between 5% and 6% above the prices of Brazil”, summarized the work.

Argentine meat became cheaper by 15% year-on-year in real terms

In the case of Argentina, prices at the consumer level in April they were located 80% above of the same month of the previous year in relation to 18 cuts according to data from the Institute for the Promotion of Argentine Beef (IPCVA).

“A nominal variation that looks very tall but that in terms of local inflation (109% for the same period) implies an adjustment in real terms of 15%. In other words, a significant reduction in the price of the product”, the report remarked.

Depending on the job, there are external and internal factors that influence this loss of value. Regarding the external context, the drop in international prices of bovine meat compared to the previous year, the average price of the ton exported this year is 27% below the price observed in the first four months of 2022.

Regarding local factors, on the supply side, the drought and the lack of sufficient food for the animals, has forced many establishments to speed up and increase discards and shipments to slaughter.

Meanwhile, on the demand side, there is a complex macroeconomic scenario for consumption, that combines a fall in the purchasing power of the income of various social segments (salaried workers, retirees, low-productivity self-employed workers, etc.) and little confidence regarding the economic future.