The Consecuences of the Drought in Argentina

Argentines consume everyday less meat, even though the dollars income for it has benn growing.

The lack of rains also began to generate inconveniences and concern in these sectors that, if the weather conditions do not change soon, serious problems with supply and prices will begin to appear.

The livestock sector is experiencing a special moment today. Instead of keeping the animals, as often happens to balance sales, today the priority of many farmers is to "get them off" instead of them dying as a result of the drought.

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Many even hurry their fattening and, what may require a process of between eight and nine months, they do it in three. As a result of this growth in supply, meat prices are flat today.

In fact, according to the latest Indec survey, the values of these products rose by an average of just 1% in November, a movement very similar to that of recent months.

"In addition to the fact that there has been a drop in domestic consumption for some time now, what happens is that the purchasing power has also weakened and some prices are not being validated," Miguel Schiariti, head of the Chamber of Industry and Commerce of the Argentine Republic (CICCRA), explained to El Cronista.

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What could reverse a good part of this negative scenario is a variation in climatic conditions. If it rains and the conditions on the soils improve, the farmers understand that there will be more animal retention, so the supply should fall. This, of course, will lead to an increase in prices.