Cepea unconcerned by Argentine meat competition
Argentina’s change in government may not affect the Brazilian livestock sector, Cepea said in a recent news release. As a big meat producer, Brazil only purchases small amounts of product from Argentina.
According to data from the USDA, Argentina is the fifth main producer and exporter of beef.
In the international market, there is also no expectation of fierce competition with Brazil, Cepea said. While Argentina does export more, the meat produced in the country is recognised by its high quality and is usually traded in different segments than those occupied by the Brazilian product.
Moreover, production costs in Argentina are much higher compared to Brazil. Agribenchmark data show that, in 2022, the production costs in Brazil averaged USD 47.90 per arroba, in the system based on pastures, and USD 57.4 per arroba in that based on feedlot. In Argentina, the averages reached USD$62.69 per arroba (pastures), which represents 31% more than that in Brazil, and USD$78.02 per arroba (feedlot), 36% higher.