Beef sector rules out sustained price increases

Andrés Contamagna, a cattle consultant, stated that recent beef price hikes are due to seasonal factors and will not persist. He forecasts price stability in April due to falling live cattle values. Consumption is shifting toward chicken and pork amid a structurally reduced beef supply.

Beef prices have returned to the center of Argentina's economic debate, though the cattle sector downplays their inflationary impact. Andrés Contamagna told Canal E that recent increases are “simply seasonal statistics” and “what happened is now in the past.” He expects “tranquility in beef prices” in April due to lower live cattle values.

The consultant warned of a structural reduction in beef supply extending into 2027. “The scarcity restriction will not be just for 2026, but for 2027,” he said. Consumers are turning to alternatives: preferring “chicken and pork.”

Despite the shift, total protein consumption remains stable at around 117-118 kg per person. “The basket has been the same in quantities,” Contamagna clarified, though with a different composition. He dismissed non-traditional meats like donkey as lacking scale.

On pricing, “the customer sets it, but beef sets the ceiling.” Costs are not directly proportional due to grains, freight, and fuel, though falling grain prices aid pork and poultry sectors.

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The Ministry of Agriculture and Rural Development identified rises in beef prices in 2026, due to a 14.59% increase in live cattle prices. The government is dialoguing with supply chain actors to implement measures protecting domestic supply and household economies.

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The average price per kilo of beef reached $31,819 in the last week of April, up 5.4% since January, according to Dane data. This rise occurs amid a debate on exports and price controls pushed by the Government. Year-over-year, the increase is 15.6%.

Economy Minister Luis Caputo projected that March inflation will exceed 3%, driven by oil impacts and educational seasonality. The official INDEC data will be released on Tuesday, April 14, at 4 p.m. Caputo assured that disinflation and economic growth will begin from April.

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