Consumers in El Salvador are beginning to see lower beef prices thanks to new international competitors entering the market. The Superintendence of Competition (SC) confirmed that the suspension of import tariffs and updates to sanitary regulations have opened the door for Uruguay and, for the first time, Argentina, to supply beef to the country.

The entry of these competitors diversifies the offer and creates competitive pressure on traditional players, which translates into direct benefits for consumers, said Gerardo Henríquez, superintendent of Competition, in an interview with Diario El Salvador. The SC’s study indicates that the temporary elimination of tariffs has already led to a 1 to 3 percent drop in retail beef prices.

More than 60 percent of the beef consumed in El Salvador is imported, making competition essential to maintain fair prices. While the import segment now shows moderate concentration due to new players, supermarkets still hold significant control in retail distribution. The risk we see is that few distributors control most of the retail market. This is not necessarily negative, but it does oblige us to remain vigilant, Henríquez cautioned.

Traditional municipal markets continue to play an important role in keeping prices in check. When supermarkets raise their prices too much, consumers can turn to traditional markets, which forces retail chains to adjust, explained Henríquez.

The SC also noted modest growth in domestic production, with a 1.6 percent increase between 2019 and 2022, supported by technical assistance, genetic improvements, and vaccination programs. Beef accounts for 21.7 percent of the cost of the urban basic food basket, making it a priority for oversight.

Our objective is that every dollar Salvadorans spend on food reflects a competitive market, with varied options and fair prices, emphasized Henríquez, who concluded that market openness not only benefits consumers but also strengthens investment and economic resilience.