Cepea, August 6, 2024
CATTLE – August and September are critical months for pastures in most part of Brazil. Many cattle farmers supplement the animal feeding even though they do not have the intention to slaughter animals in the short-term. This fact increases farmers’ expenses, which has been verified simultaneously with price drops this year. In other words, as expenses increase, the revenue drops, challenging producers.
Among major inputs to supplement animal feeding are grains and protein salt. Although fed cattle prices dropped in July, the current exchange ratio against corn and soybean meal is considered good for cattle raisers.
The price level this year is relatively high; however, recent decreases have been a challenge for producers.
SWINE – Price averages of special pork carcass registered slight drops in July, while quotations for beef carcass and chilled chicken meat moved down more significantly. Therefore, pork meat lost competitiveness against major competing products at the end of the month.
Concerning the domestic pork market, recent price drops of the live swine have not been enough to boost the demand for cuts. Moreover, due to the end-of-the-month period and the consequent lower purchasing power, the pace of trades continued slow, resulting in price decreases from June to July.
POULTRY – Average prices of chicken meat decreased for the third month in a row. In July, the price drop was the less intense since the restrictions imposed by trade partners, after the bird flu case registered in Rio Grande do Sul, in May. However, quotations in July were higher than those verified in July/24, in real terms.
(Cepea-Brazil)
Centro de Estudos Avançados em Economia Aplicada – CEPEA-Esalq/USP
