Argentina vs. Germany: the meat price paradox

A private survey shows that beyond the price of meat, the problem facing Argentinian consumers is the loss of purchasing power. He also warns that the solution to this is to shut down exports like the government has done.

According to work by livestock consultant Alberto Wainer, with data from the CREA movement, Argentina is in 13th place in the world ranking of meat prices, considering the official dollar, but its consumers, with a lower salary , for example, they buy much less than in Germany, ninth in the price ranking, but with greater purchasing power. In Germany, they buy more than twice as much meat as in Argentina with this salary.

In Argentina, according to the report, averaging more economical and more expensive cuts, the average dollar value of the kilo is US $ 5.7. Meanwhile, to mention in other countries, the prices are as follows: South Korea, $ 29.3 per kilo; Japan, US $ 21.8; France, 19.5 USD; Holland; US $ 18.1; Australia, $ 17.9; Denmark, $ 15.2; United States, $ 12.5; China, US $ 12.3, Germany, US $ 12.2, Great Britain, US $ 10.2; Chile, $ 9.6; South Africa, $ 7.3. As mentioned, in Argentina it is worth the equivalent of US $ 5.7 per kilo, a value it shares with Bolivia. In the case of Brazil, it’s a little cheaper: US $ 5.5 per kilo.

After these values, Wainer considered the average industrial wage in Germany to be US $ 2,900 and the average industrial wage in Argentina to be US $ 497. Given these data, it is observed that in Germany 237 kilograms of meat can be purchased with this salary, in Argentina with the average industrial salary no more than 87 kilograms are acquired.

“It is clear that an average industrial wage in Germany, with meat at over $ 12 a kilo, buys more than double the average industrial wage in Argentina where the meat has a retail value of $ 5.7. “said the consultant.

“There is clearly a rise in meat prices, which occurs against the background of a significant decline in purchasing power in Argentina, where wages have fallen both in dollars and in the purchasing power of products. local”, point to work.

In this context, the report also analyzed what happened with the living and mobile minimum wage and purchasing power.

“While Argentina’s living and mobile minimum wage was the highest in the region in 2015 ($ 580), it is currently one of the lowest at just $ 255. This had an impact on the purchasing power of wages in all products, including meat. The purchase of meat with a subsistence minimum and a sliding wage in March 2021 was 50 kg, the lowest since 2006 ”, specifies the report.

The report also points out that “To infer that the domestic price of meat will fall by suspending exports is clearly a mistake.”

“There is no doubt that an instant supply will be generated which will lead to a temporary drop in prices, but less than that of the last ban (in 2006); followed by a drop in production, which will lead to a structural decline in the supply of meat while the demand from Argentines will remain historic and this will support, or even increase, its retail price, despite the fact that an impetus could be generated immediately. the supply of frozen meat that was going to be exported, which represents 10% of a month’s slaughter, ”he added.

THE NATION

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