Argentina beef consumption drops amid rising prices and industry crisis

Beef consumption in Argentina has experienced a significant decline, with per capita consumption falling by 9.5% year-on-year as of August. According to CICCRA, Argentines are consuming nearly 5 kilograms less meat per person compared to the previous year. This contraction is largely driven by rising retail prices; while the general inflation rate (IPC) stood at 33.7%, the meat and derivatives sector saw a year-on-year increase of 42.3%. Specifically, beef cuts saw price hikes exceeding 50% for items such as ground beef, asado, and various steaks.

The drop in domestic demand is creating operational challenges for meat processing plants focused on the local market. In the province of Santa Fe, the government is evaluating rotating suspension agreements to preserve jobs as companies face reduced activity. The Minister of Labor, Roald Báscolo, noted that domestic-oriented plants are more vulnerable to these shifts than export-focused facilities. One such facility, the Don Juan meat plant, is currently facing economic difficulties and wage debts, prompting calls from the Meat Workers Union for intervention to prevent permanent closures or mass layoffs.