BOGOTA COLOMBIA). Tuesday, February 22, 2022 (RPTV NEWS AGENCY). Live cattle exports sent meat prices skyrocketing at rates unprecedented in the history of livestock farming. In one year, the price per kilo registered an increase of 53.8%, going from 24,958 pesos per kilo in December 2020 to an average of 38,409 pesos per kilo in December 2021.
The fact, which seems positive for the livestock sector, is in practice a “double-edged sword” for the competitiveness of livestock production. On the one hand, high prices have generated a drop in the consumption of this food because the purchasing power of the population is not very large. On the other hand, they have caused changes in the meat trade to the detriment of thousands of vendors in the country.
That is why refrigerators and meat dispensers are concerned. The trade of this food registers drops in consumption and the traditional trade system presents changes that harm the activity.
For example, in some regions of the country, the consumer no longer buys meat by the pound or by the kilo. “It got to the point that the consumer buys two thousand or three thousand pesos of meat, so that they reach those little pesos” explain merchants of this food.
But why did this situation come about? The answer lies in exports of live animals, which have become the main cause for meat prices to increase disproportionately. Records of sales abroad indicate that the trade of animals abroad increased 250%, going from 75,370 heads of cattle exported in 2019 to 264,107 head of cattle sent abroad in 2020. However, and despite the fact that this activity presented a slight decrease in 6.4% between 2020 and 2021, the export trend tends to rise with great supply threats for the country. For example, in January this year, they exported 15,600 livestock to Lebanon and Egypt. Last weekend, 10,000 more copies were dispatched and another shipment of 10,000 copies is expected for February 15.
Undoubtedly, exports of live cattle marked unexpected increases in the price of meat and will continue if the government does not adopt measures to regulate this market, says the Executive President of the Colombian Meat Processing Association (Asofricol), Álvaro Urrea.
“The government has been insistently asked to issue regulations aimed at regulating live cattle exports, but it has ignored it,” explains Urrea, claiming the urgent need to have clear regulations so that animals for export meet weight requirements.
It is essential to adopt several measures so that meat prices stop their upward trend and the livestock sector is not harmed. One, urgently start a bovine repopulation program. Two, create norms that regulate live cattle exports, especially in relation to the weight of the animals.
ANIMAL PRICES
According to data supplied by the National Administrative Department of Statistics (DANE), the price of the fat steer registered considerable increases in the last three years. For example, from 2018 to 2019, prices grew 0.66%, in the period from 2019 to 2020, prices increased 14.12% and in the period from 2020 to 2021, prices increased by 39.62%.
FAT STEER PRICE
($ x kilo – average for each year)
YEAR PESOS
2018 4,243
2019 4,271 (Increased 0.66% compared to 2018)
2020 4,874 (Increase 14.12% in relation to 2019)
2021 6,805 (Increased 39.62% in relation to 2020)
MEAT PRICES
According to reports from the National Administrative Department of Statistics (DANE), meat prices showed increases of 4.21 in the period from 2019 to 2020 and 53.8% in force from 2020 to 2021.
MEAT PRICE PER KILO
YEAR PRICE IN PESOS
DEC. 2019 23,950
DEC. 2020 24,958 (Increased 4.21% compared to 2019)
DEC. 2021 38,409 (Increased 53.8% compared to 2020)
ANIMAL EXPORTS
The National Administrative Department of Statistics (DANE), reveals that the trade of live animals for export presented a vertiginous jump between the period 2019 and 2020. Sales grew by 250%, going from 75,370 animals exported in 2019 to 264,107 animals exported in 2020 .
In 2021, sales of live animals abroad totaled 247,171 animals, registering a slight decrease compared to exports in 2020.
YEAR QUANTITY OF ANIMALS
2018 54,595
2019 75,370 (Increased 38% compared to 2018)
2020 264,107 (Increased 250% compared to 2019)
2021 247,171 (Decreased 6.4% in relation to 2020)
According to Urrea, this growth in live animal exports has caused a substantial drop in the country’s livestock stocks, which means that the demand is much greater than the supply.
It is imperative that the government regulate live cattle exports, given that the country may experience shortages of meat with enormous consequences for the price and purchasing power of Colombians, calls for the Asofricol.
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2021
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