Argentina's "anything-but-Libertarian exchange controls..." IMF meets in BsAs

Meat consumption is at historically low levels ....

Just went to my usual local butcher this morning in Neuquen and was shocked at the prices.

Vacio $25,764 /kg
Costeleta $21,441 /kg
Patamuslo $3,277 /kg

These cuts were selling for $15,000 /kg just 4 month ago. Forget the supposed 5% monthly inflation. Carne selling for more than 8x chicken. They've now started vacuuming sealing cuts, I presume to make their unsold cuts last longer. It's no wonder consumption is so low.
 
Related to the original topic, we were told last week the cepo ends this year, but today while Milei was claiming his tirade in Davos was doctored (lol) he said the cepo ends next year. So which is it. because the BCRA is running on fumes and besides a devaulation that Caputo says will never happen, I'm not sure how they plan to meet dollar denominated maturities without another IMF loan.
Stop and think about what that means. They have to borrow money to make the payments on a loan.
How does that ever end well? Why would any lender in their right mind loan money for that purpose?
 
Stop and think about what that means. They have to borrow money to make the payments on a loan.
How does that ever end well? Why would any lender in their right mind loan money for that purpose?
You could retire a loan with a higher interest rate, shorter repayment period, etc with one at a lower interest rate and longer repayment period. I don't know if that's the case here.

The worrying thing is that the 11 billion loan would be to defend an exchange rate, and we know how well that went for Macri & Co.
 
You could retire a loan with a higher interest rate, shorter repayment period, etc with one at a lower interest rate and longer repayment period. I don't know if that's the case here.

The worrying thing is that the 11 billion loan would be to defend an exchange rate, and we know how well that went for Macri & Co.

Among other evils, it led to massive capital flight. Even though IMF rules say they will not extend loans where they cause capital flight.
 
Stop and think about what that means. They have to borrow money to make the payments on a loan.
How does that ever end well? Why would any lender in their right mind loan money for that purposSounds
You could retire a loan with a higher interest rate, shorter repayment period, etc with one at a lower interest rate and longer repayment period. I don't know if that's the case here.

The worrying thing is that the 11 billion loan would be to defend an exchange rate, and we know how well that went for Macri & Co.
I read that the talks have stalled because the IMF insists on a free floating peso, ending the CEPO. The Leader won't allow the rules of capitalism to apply to the peso
 
The usual Google Translate deal, banner is in Castellano and story will initially appear in that tongue, but wait a few seconds and it will change to English.

Meat consumption is at historically low levels and the low dollar is hurting foreign sales, which is why the sector is cutting staff. The Sancor case shows why the Milei model is destroying volume businesses.​

Javier Milei's idea of a primary economy, focused on purely export-oriented activities, began to bury the volume businesses linked to mass consumption . As the official income policy tends to wage negotiations below a stable but expensive food inflation, in addition to price increases for services that break the pocket, sales will have much more moderate growth in the following years. That is, they will go from moving at a significant speed to a rather low cruising speed. This phenomenon, which is first seen in the lower household spending on essential goods, has already begun to make the companies that produce basic food baskets and fresh products bleed.


This week, two specific events occurred that show the crisis that food producers are going to go through. The best known, the 350 layoffs at the Sancor dairy. The other, a looming crisis at national meat packing plants, which due to the drop in sales and the low dollar (which affects exports), have already started laying off workers. According to Página I12 , this is a process of laying off contracted and temporary workers. In addition, most national meat packing plants have also reduced their slaughter rate given that there is no consumption.

Since the government does not look at these types of conflicts linked to the market performance in labor-intensive segments, the winners in this crisis were the Brazilian meatpackers. With more financial backing to resist, companies like Marfrig and JBS, the former Swift, are taking a good part of the slice of a market with a majority of national companies. This crisis has already caused officials in the meat sector to ask the government for a solution. Requests in vain.
And then this from Infoebae.com today: https://www.infobae.com/economia/20...se-espera-otro-ajuste-para-los-proximos-dias/

15% meat increase last week and another adjustment in the next few days; even though consumption is down.

Like WTF?!?
 
And then this from Infoebae.com today: https://www.infobae.com/economia/20...se-espera-otro-ajuste-para-los-proximos-dias/

15% meat increase last week and another adjustment in the next few days; even though consumption is down.

Like WTF?!?
The article explains that the "low volume, high margin" model has been compromised because both domestic volume is falling and external sales are crippled by the high peso. They therefore have no choice but to raise the domestic margin and cut production.
 
The article explains that the "low volume, high margin" model has been compromised because both domestic volume is falling and external sales are crippled by the high peso. They therefore have no choice but to raise the domestic margin and cut production.
Nice, explains some stuff. The usual laws of supply and demand are suspended, in other words?

On the other hand, why is domestic production falling? When other agricultural domestic production has increased by 20% or so?
 
Nice, explains some stuff. The usual laws of supply and demand are suspended, in other words?

On the other hand, why is domestic production falling? When other agricultural domestic production has increased by 20% or so?

Because Argentina
 
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