Argentina: Farm prices lost the 2022 final against costs

Published 2022년 12월 26일

Tridge summary

Within the past year, Uruguay has seen a significant uptick in bovine meat prices and net exchange rates, with steer prices rising by 30 percent, Hilton steer by 28 percent, cow conserve by 37 percent, and wintering calf by 18 percent, despite a 96 percent inflation rate. The cost of various livestock inputs and health plans has escalated, leading to a decrease in profitability for rented breeding fields and an increase in the cost of calving. Per capita beef consumption and spending have dropped to 20 and 28 percent below the average respectively, with the current spending on beef being 44 percent higher than the inflation rate. This situation reflects a period of fluctuating annual beef spending since 2003, which has seen peaks and valleys due to factors like devaluation, inflation, and changes in intake. The recent decline in consumer spending on beef is attributed to a combination of high real meat prices and a slight increase in intake, indicating a challenging time for the Uruguayan livestock sector.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In the last 12 months, between December 2021 and this month, and while inflation (CPI) was 96 percent, the price of the steer (300 to 390 kilos) rose 30 percent, that of the Hilton steer 28 percent, that of the cow conserves good 37 percent and that of the wintering calf did so only 18 percent. In the same period, the net exchange rate for bovine meat increased by 63 percent, while a weighted livestock inputs index (personnel, pastures, winter pastures, corn silos, roll-making, corn, wire, diesel) grew 95 percent in pesos and 19 percent in official dollars. The cost of a health plan for a breeding farm rose 85 percent, while the foot-and-mouth disease vaccine did 99 percent. The result of the exploitation of a rented breeding field (420 hectares), in the last 12 months, went from 2.7 million pesos of profit to 1.8 million pesos per year, and the profitability on the capital invested in said exploitation it dropped from 15 percent in December 2021 to 3.70 percent in December 2022. ...

Source: Campototalweb