The price of a kilo of live pork continued its upward trend during November, with a 5.6% increase compared to October and 45.4% year-on-year, reaching $ 168.21 (US $ 1.60 to the official dollar). In this way, it exceeds by almost 6% the average and historical values from 2012 to 2019. This was pointed out by a report from the consultant Juan Birds based on data from Ministry of Agriculture of the Nation and other sources of the activity.
While, At the counter, the month-on-month rise was 7% and 66.27% year-on-year, so the price per kilo was $ 418.14. In dollars, it was 6.2% and 38.45%, respectively, reaching US $ 3.97, according to the official exchange rate. “The increase is almost as high as that produced in September”, he consigned.
“The price of cuts rose almost weekly, with the first two weeks remaining close to the bovine cuts, but in the second fortnight, with the strong rise in beef, it became differentiated again ”, he stressed.
He also added: “The constant increases in the price of capon exceeded expectations and one more is expected during December. The big question is until when the price of the cuts to the public will be validated. Salaries have not risen on the same scale as food and meat in particular ”.
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Uccelli also referred to the price of the steer in the Liniers Market, that “has marked a strong increase, immediately after the legislative elections, generating a large increase in the price of beef cuts to the public.”
Continuing with the analysis of pig activity, the specialist indicated that local prices “are well above” international prices, “making exports even more difficult and facilitating imports”, all related to “An exchange rate too late.”
Meanwhile, it is worth remembering that, due to the high levels of informality in the sector, it is known as the “maximum average value” that is actually paid in the market and is taken as a reference. While the “average value” is what is actually invoiced, where in that case the price of a kilo of live pork was $ 141.40 (US $ 1.34 to the official).
In that sense, with a fourth month on the rise in local values of the standing capon, the difference between the “average price” and the “maximum average price” is beginning to lessen. Regarding that, he indicated: “In this month we see a slight decrease, being the difference of 18.9%, lower than the historical average ”.
Regarding what happens at the international level, the report stressed that the positive trend of the local market is “totally out of date with what happens in the world”
“The sharp fall since June that has been marking the pig in the US, with values similar to November of last year. Brazil continues to show systematic variations of drops and rises”, He detailed.
Gross margin in dollars is the highest in the last 5 years
In November, the gross margin increased again in the pig sector due to a higher increase in the price of live pig than of cereals. “The absolute value obtained is the highest in the last 5 years. The annual accumulated, although improving, is still below the 2012/19 average ″.
“When we do the analysis of the variations of the last 12 months, cuts of pigs and cattle show the highest values, followed by the price of live pigs, soybeans and corn, the price of the dollar being very relegated ”, he analyzed.
In this context, during November, as in June and July, there was also a smaller difference with respect to the average weight of last year with a reduction of 1.5 kilos per head in the slaughter. “Unfortunately, due to the good prices, animals are taken out earlier that should be at the farms for at least one more week”, stressed the work.
Finally, Uccelli also reflected how the distribution of income among the different factors that make up the chain, taking into account the total costs. Thus it could be reflected that, for each peso placed by the consumer, costs are carried by 60.5%, followed by taxes (18.5%), producers (11.4%), butchers (5.4%) and slaughterers (4.2%).