Meat-loving Argentines eat less beef as inflation bites
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[June 22, 2024] By
Candelaria Grimberg
BUENOS AIRES (Reuters) - Argentines, famed for steakhouses, sprawling
cattle ranches and asado barbecues, are consuming less beef than ever,
forced to tighten their belts by triple-digit inflation and a recession.
Beef consumption is down almost 16% this year so far in the South
American nation where beef has always been an essential part of the
social fabric, along with soccer and mate tea.
Many Argentine homes have in-built "parrilla" grills where families
gather. Steakhouses dot street corners around Buenos Aires and people
will huddle around make-shift barbecues for a taste of beef, even on
construction sites or at protests.
"Beef is an integral part of the Argentine diet, it is as if pasta were
eliminated for Italians," retiree Claudia San Martin, 66, told Reuters
while waiting in line at the butcher shop. She said she was willing to
cut back on other purchases such as cleaning products, but beef was
sacred.
"Argentines can eliminate anything, I believe, in difficult times like
this. But we can't do without meat," she said.
Still, the latest data show Argentines are this year eating beef at a
rate of around 44 kilograms (97 lbs) per year, down sharply from more
than 52 kg last year and as much as 100 kg a year in the 1950s.
Part of the long-term decline is a longer-term shift toward other meats
like pork and chicken, as well as cheaper staples such as pasta. But
this year's plunge has been driven by nearly 300% inflation and a
stalling economy along with tough austerity measures by libertarian
President Javier Milei.
Poverty is up, more people are homeless in major cities and lines have
grown at soup kitchens. Many families have reduced consumption of
staples like meat, milk and vegetables. They say they are yet to feel
the benefit of slowing monthly inflation.
"The situation right now is critical. Consumer are taking decisions
thinking just about their wallets," said Miguel Schiariti, president of
local meat chamber CICCRA, who expected meat consumption to remain
depressed.
"People's purchasing power is weakening month by month."
LESS MEAT, MORE PASTA
Out in the farmlands of Buenos Aires province, cattle ranchers are
feeling the pinch.
"The drop in consumption is worrying," said Luis Marchi, 48, an
agricultural engineer and the third generation to run the family farming
business producing grains and livestock.
[to top of second column] |
Butcher Pablo Alberto Monzon selects a piece of meat at his shop, in
General Pacheco, on the outskirts of Buenos Aires, Argentina May 19,
2021. Picture taken May 19, 2021. REUTERS/Agustin Marcarian/File
Photo
"Beef consumption has been dropping quite sharply recently," he
added, blaming inflation and the economic slump. "Consumers try to
replace beef with cheaper foods, other types of meat or pasta."
Another rancher, 53-year-old Guillermo Tramontini, said input costs
had risen while drought last year hit many herds.
"Beef is not that expensive, but people's purchasing power has been
reduced terribly," he said, adding farmers were being careful with
capital expenditure to avoid firing workers.
As local consumption has slid, exports have risen, but weaker global
prices have dampened the boost for farmers. By far the top buyer of
Argentine beef is China, though it imports cheaper cuts not used
domestically.
"The export sector is going through a very tough time even though it
keeps exporting big volumes. Prices in the international market have
fallen a lot," Schiariti said.
'CHEAPEST CUTS'
In his butcher shop in Buenos Aires where he has worked for 40
years, Gerardo Tomsin, 61, said people were still coming to buy
beef, but were always hunting for cheaper deals.
"People keep coming, the issue is that they consume less. There are
people who turn to other products. It is a permanent search for
prices," he said.
Another butcher Dario Barrandeguy, 76, said people were buying the
cheapest cuts of beef or other less expensive meats.
"The consumption of chicken and pork has increased a lot recently,"
he said.
Milei, a free market economist who calls himself an anarcho-capitalist,
ended the previous Peronist government's freeze on beef prices.
"Things have become very expensive and when it's so costly we just
don't buy," said Facundo Reinal, a 41-year-old teacher, adding it
meant spending less time socializing around the grill
"We're seeing overall people doing fewer barbecues, which is a key
part of the culture here in Argentina."
(Reporting by Candelaria Grimberg; Editing by Adam Jourdan and
Daniel Wallis)
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