Beef Prices Expected To Rise 40%

South American farmers switch to selling corn and soybeans for fuel rather than feed, causing a shortage of beef for export.

This should impact the US glatt kosher market, as well, although much less so than in Israel.

Meat prices expected to rise
Price hike may reach 40% in near future due to shortage of beef in South American countries
Yehudit Yahav • Ynet

The prices of beef in Israel are expected to see a sharp rise of up to 40% in the near future, due to the shortage of beef in South American countries.

Most of the frozen meat imported to Israel originates in Argentina and other South American countries, which have significantly reduced beef cattle breeding in the past year.

"The farmers in these countries have began growing soybeans and corn in order to meet the demand for biodiesels, leading to a drop in the supply of beef, which will push prices up," explains Haim Dayan, director of the Beef Cattle Breeders' Association in Israel.
 
The owner of a large meat factory, which imports frozen meat from Argentina, said earlier this week that the prices have already begun going up: "A ton of frozen meat which the importers paid $3,400 for several weeks ago, spiked recently to $5,000. There will be no escape from raising the consumer as well," he said.

The supermarkets, meanwhile, appear unmoved by the importers' warning. However, restaurant and fast food chain owners fear they will have to absorb the price hike.

Ofer Petersburg contributed to this report

Comments

[sage]

This will, praise HaShem, have a very negative effect on the RCF South American operation, a veritable cash cow, until now.

It has been observed, that shipments of Rubashkin meat from South America, have been seen entering American ports.

These will now have to be be reduced and the profits reduced, as well.

Another nail in the RCF coffin.

[harold]

Why would anyone in the US import beef from abroad when we have our own supply line of beef? I know that I would want the freshest and cheapest meat possible. I am sure that it must cost a pretty penny to expedite shipment of meats from South America so I don't see the point.

Does anyone have any hard numbers of what percentage of kosher meats come from South America?

[sage]

You have a good question.

Part of the answer is, that the Lubavs won't eat anything else but Rubashkin stuff.

Hebrew National, Empire and other reputable brands are off limits.

And there may be heavy handed pressure by the RCF to efforce this policy.

[nachos]

Right now all domestic farms are in the Red. A 40% increase would be welcome. Farmers are getting about 1/2 of what they got for milk a year ago. There is a real crisis brewing in rural America.

[harold]

I don't know about you guys, but if prices go up 40% then I will be eating (more) chicken. Meat prices are high enough already! One does not HAVE to eat beef afterall. Remember the law of supply and demand, the sooner people refuse to pay the higher prices the sooner the prices will come down.

[yidandahalf]

What is the ratio of SA to US beef for the Ko$her market?
The fressers will be tightening their belts. It's about time.

[sage]

The situation is much more complex than simply supply/demand.

Things that may be considered are:

1. Are the animals free-range or raised on Factory-Farms.

2. Are the workers being paid living wages, etc., or are they being paid at barely subsistence levels.

3. Is the Shechitah being done properly in Grandin-Type upright pens, or is it being done inhumanely.

4. Is the Kosher supervision being done by reputable agencies, with no conflict of interest, or are corrupt agencies involved.

[state of disgust]

Harold:
This may come as a shock, but if feed costs go up for beef, feed costs for chicken will also rise, and chicken prices at the consumer level will increase.

[MisterApikoros]

The reason for this has to do with heavy-handed meddling by the president of Argentina, Christina Kirchner, the wife of former and very popular president Nestor Kirchner. She imposed a tax on exports of Argentinian crops (such as soybeans) which caused massive demonstrations and general strikes in Argentina, which caused most of the tariffs to be reversed.

Mrs. Kirchner is now a president in name only, as the opposition has taken control of the Argentinian legislature.

As for ethanol, Brazil produces far more than it needs, and is a major exporter.

[justice seeker]

I reckon its propaganda. Beef prices in the US are stable. Corn has plummeted from its high, and even soy beans are down. Livestock producers are struggling to make a buck. If in fact the Argentine herd was downsized, during the interim the market would be flooded with cheap beef as the cows were slaughtered. Producers don't keep cows that don't produce either by design, or nature. I'd say it is just another shimmy by the kosher kindred to extract some more dollars from your pocket books.

[MisterApikoros]

If anything, beef prices in the USA have trended downward. You're absolutely correct about what would happen if the Argentinian herds were downsized, and that has not happen.

This story caught my eye for precisely that aforementioned reason you quoted. On the world markets corn and beans have retreated to their normally cheap levels, meaning that if Argentinian beef (the best IMHO) were to become extremely expensive it would be priced out of the market.

The gauchos wouldn't like that, and would make quick work of Mrs. Kirchner. Remember, Argentinian politicians come and go, but gauchos don't.