MercoPress. South Atlantic News Agency

Argentine consumers boycott meat to force lower prices

Uruguayan beef is rapidly creeping into Buenos Aires butcher stands

A consumer group had called on Argentines, world leaders in beef consumption, to boycott the meat for a week in an effort to lower prices, according to news reports from Buenos Aires.

The price of beef has increased 40% to 50% since December, said the Association of Free Consumers, which called for the boycott which begun this week.

The consumer group cited success in a recent boycott of tomatoes, which had risen in price, the Argentine government-run Telam news agency and other outlets reported. Within days of the tomato boycott, prices dropped, the group said.

Argentina -- a nation of nearly 41 million residents and 51 million cattle in 2007 -- has faced a crisis as cattle supplies have dipped to their lowest levels in 45 years, according to the Argentine Farm Federation.

The Association of Free Consumers cites three possible reasons for the decline in cattle stock: a significant increase in the number of slaughtered livestock; an acceleration in the cultivation of soy, with more than 10 million hectares (24.7 million acres) converted from livestock to soy production; and more Argentines buying beef.

Drought also has decreased the size of available pasture land.

Argentines are the world's champs at beef consumption -- eating 68 kilograms per person per year, the Farm Federation said.

Despite the high consumption, that's a significant decrease from the 80 kilograms per person per year in the 1970s, the farm group said.

Argentine beef is considered among the best in the world, and the nation is the third-largest exporter in the world, behind Brazil and Australia. But the drastic decline in beef cattle has led some Argentines to worry that the country could eventually have to import beef to keep up with the high demand.

In effect the latest official data shows that beef imports from neighboring Uruguay have jumped to 90 tons per month and during January reached 110 tons. This compares with the 793 tons for the whole of 2009.

Insignificant volumes for the Argentine market, nevertheless they signal a tendency since farmers insist that the calves to ensure a normal supply in the coming months and years were never born and the number of cows slaughtered have been a record.

Buenos Aires meat retailers estimate that Uruguayan beef imports could reach well over 2.500 tons this year.

The government version is that there’s not an “overall surge of prices” but rather changes in relative prices caused mainly because of seasonal changes.

“Beef prices have gone up, we are great consumers but once stocks normalize, it’ll be back to business as usual”, said Economy minister Amado Boudou.