Al Jazeera (is that the world´s best news network,or what?) kicked-off the month with this tremendous video which mentions how the price of asado de tiro (beef ribs cut against the grain) had already zoomed from 15 pesos to 26 pesos.
Today, that cattleman´s bible, Meat Trade News Daily reports via mla.com how the government and the meatpackers here in Buenos Aires are trying to deal with beef prices that begger the word "runaway."
Since Al Jazeera´s video, prices for cattle on the hoof have risen 50% from their already long-time highs.
"(Secretary Moreno) this week announced an agreement with a group of meatpackers to allow 25,000 tonnes cwt of beef exports each month. According to the deal, processors consented to sell 13 highly demanded cuts on the domestic market, at low prices set by the Secretary (according to Clarín). Other export companies may join this arrangement, as long as they sell the products at the suggested prices. The agreed export volume is around half the average monthly beef exports last year."
With supermarkets under pressure to maintain price controls ...and the meatpackers who supply them under pressure with the skyrocketing prices for cattle at auction ...something has to give. In this case, it was the domestic commerce secretary that tossed the meatpackers a bone.
Since beef exports are more lucrative than local controlled prices, allowing the meatpackers to export a little in exchange for a promise from them not to hike prices to the supermarkets could help keep the price of asado down for awhile.
The relief, if any, however, will only be temporary breathing space for the ministery. Prices for cattle at auction have already tripled from the long-time rate of 3 pesos a kilo ...to 9 pesos.
All that ...and no end in sight. Auction prices could quadruple (to 12 pesos) before the end of the month.
6 comments:
Thanks Mike. We are in town this week after being gone for two months and the prices on everything is pretty astounding. But, the price of beef REALLY shocked me. Guess it is time to go back to being semi-veg....
Yeah! You and a lot of people. I don´t know what the statistics for this year so far ...but I think we´re gonna lose our title as world´s biggest beef eaters.
The high prices now are partly the result of last years slaughters due to artificially low government regulated prices.
Those that kept their herds last year are now being rewarded for their long term strategy and risk, when most others were slaughtering early to raise more profitable soy, etc.
The stupid new deals and nonsense won´t help any and will lead to more disgusting and cheap feedlot Argentine beef. How sad to see Government Intervention ruin an industry with export and price ´controls.
Wish that Buenos Aires would simply let the free market work for the campo, and step out of the way.
Fred
"A capitalist would sell his own hangman a rope." Although Lenin probably never said that, I think it rings true.
Especially among us agricultural types, if you just let us sell at market price ...we´ll bury you in the cheapest food until we go broke.
But take away our imaginary method of predicting the future (market prices) and we freak out and start spending our money elsewhere ...and our produce starts to drop.
Then, strangely enough, the prices for what we do start to go up.
The old US rural populists used to say, "raise less corn ...and more hell!"
its still cheaper and nicer than anything I have back in liverpool. Hopefully the prices will calm down, else the pound go up!!
Pound won´t go up with the way the Bank of England is printing them under the guise of quantitive easing!
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