In the report, signed by economist Tobías Lucero, more than 180 prices of eight cuts of medium to high quality beef in 21 supermarkets were surveyed. The analysis concluded that the average price (in Argentine pesos) of this basket was $9,413 per kilo in Argentina; above (6.6%) the $8,855 per kilo in Brazil and the $6,644 in Paraguay (41% more), and below (-19%) the $11,681 in Uruguay and 21.5% less of $12,397 in Chile.
If measured in the Argentine export dollar during April, the retail price of these cuts ranges between US$ 7 and US$ 14. In our country, they are around US$ 10.4 per kilo, which according to the report represents a high value when compared to internal prices in recent years. “A similar phenomenon is observed in all countries in the region,” added Lucero.
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The survey highlighted that the four exporters in the region (Argentina, Brazil, Uruguay and Paraguay) presented average values below Chile, the only importer. “As has already been happening in some other surveys and seems to be intensifying, Uruguay shows an average value closer to Chile than to Argentina and Brazil.”Lucero analyzed.
A surprising fact was the distance in the values of this basket in Paraguay with respect to the rest of the countries analyzed. On this topic, the work pointed out that it is due to the following reasons:
– The lowest tax burden that Paraguay has, both on income and internal consumption (for example, this country has a VAT that is applied at a rate equivalent to 50% of the Argentine rate).
– Possible differences in quality of beef cuts.
– The strengths that have been developed Paraguay in its farm and meat chain in recent years, with production, industrialization and transportation costs, etc. that have become increasingly more competitive and have allowed it to enter the top 10 of leading exporters worldwide.
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In April 2024, Brazil appeared – after Paraguay – as the country with the cheapest meat in the region. Paraguayans lead the ranking of lowest prices in the latest surveys, except when Argentina took that space away in January 2023. “On the other hand, Chile remains as usual as the country with the most expensive beef at the consumer level. As for Uruguay, it shows an average price above those of Argentina and Brazil, but the current gap is increasing, with prices that place it closer to the values of Chile,” Lucero estimated.
It should be noted that IERAL’s work extended to the last three years. In all surveys, the price gap remained favorable to Argentina in comparisons with Uruguay and Chile, while with Brazil there was never a significant gap.
Source: IERAL Mediterranean Foundation.
Below is the full IERAL report:
Ieral 4763-Working document.pdf
