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The executive president of Fedegan revealed which has communicated this situation to the Ministries of Agriculture and Trade, “because just as important as continuing export efforts is the elimination of distortions in the internal market, for the benefit of those who produce and those who buy.”
“Who remained and still has this billion-dollar margin left today?” is the question asked by José Félix Lafaurie Rivera, executive president of the Colombian Cattle Breeders Association (Fedegán). on the speculators who, under the protection of informality, become effective price makers and veritable vultures who devour the livestock and the pockets of the consumer.
(See also: Announcement for those who eat beef in Colombia: New price would surprise many)
The senior executive emphasized the union’s contribution in the diversification of agricultural exports, as it affects the modernization of production and this affects prices and profitability, leading to the welfare of livestock farmers and the improvement of rural life.
Aside from that, International meat salesMilk and other products from the Colombian countryside are part of plans by this and other governments that have proposed less reliance on oil industry revenues in the export basket.
However, international trade in Colombian meat has declined significantly this year, affecting thousands of livestock families and the regions that depend on this economic and social sector.
In his weekly column, the union leader recalled that thanks to the union’s export goal, which included the restoration of the country’s status as a foot-and-mouth disease-free country, modernization efforts for sustainable production and intensive commercial activity, the exports of Meat and animals have grown since 2020, with sales of $267.1 million, a jump in 2021 with 427.4 million, to 2022 with 502.4 million, exceeding the target of 500 million meat exports.
“It wasn’t easy because, in addition to the challenge of the high standards of the markets, we were also confronted with narratives that were directed against our activities. We need to export, but if we export animals while strictly adhering to health and welfare protocols, we will be “media bullied” by extreme animal activists. And if we export meat, we are responsible for high consumer prices and inflation,” he added.
What happens to the price of meat? In his writing entitled “The crossroads of the meat sector”, Lafaurie Rivera explained that between 2020 and 2022 the price of meat for the consumer actually increased in parallel with exports, but not because of the latter, but because of the inflation phenomenon. worldwide, which affected all products.
“However, in 2023, this positive trend stopped, and meat and animal exports amounted to $305.6 million in November, lower than in 2021,” he said.
What happened to the price of meat?
First, global inflation eased and international prices fell.
Second, while the peso appreciated in favor of importers, the Brazilian real, the currency of the region’s largest seller, devalued and its meat became more competitively priced.
Thirdly, since what one gains is what the other loses, our reduced competitiveness due to the exchange rate resulted in both markets being closed between August and September Plants of the multinational company Minervaresponsible for 90% of exports.
According to Lafaurie, what do we do with meat in Colombia?
Firstly, given the latent danger of Minerva’s withdrawal due to multinational companies laying their eggs where there are better conditions for hatching profits, which would mean a collapse in exports and a real catastrophe for our livestock industry, because the price, which peaked at $9,600 kilo/paddock/scale in May 2022, is now around $7,400 and could fall to $6,500.
Second, in contrast to what has been happening worldwide – a fall in consumer prices – the price of meat in Colombia remains “stablely high”, even though the price of livestock has fallen by more than 20%.
This happened back in 2009. When exports to Venezuela collapsed, livestock prices fell, but the consumer price did not fall by a peso. Who gets this margin?
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In statements to the media, the executive denounced a number of people who buy cattle for cash, bring them from different parts of the country, slaughter them without any control and then sell them as hot meat. “Where is the Minister?” Health of Bogotá? Where is the minister of the government of Bogota? Why didn’t the meat fall through?
Finally, the managing director of Fedegán announced his next analysis: “If it rains because of meat, it doesn’t rain because of milk.”
The situation is by no means easy for an economic and social sector that is twice the size of poultry, three times the size of coffee and flower growers, 4.1 times the size of pork. 5.2 times that of the banana grower and 7.2 times that of the palm grower.
In addition, the livestock industry creates around 1 million jobs and is present in more than 1,000 Colombian communities.
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