BEEF MARKET BOOMING, PRICES EXPECTED TO REMAIN FIRM

The Brazilian beef market is experiencing a positive cycle characterized by rising prices, record-breaking exports, and increasing demand in key global markets. In the segment A Protagonista, agribusiness expert Roberta Paffaro analyzes the current scenario, highlighting the factors behind the rising price of cattle and the outlook for the production chain in the coming months.

“The fattened cattle market is heating up, with exports boosted by the exchange rate and strong international demand, particularly from China and the United States,” says Roberta. According to her, this trend is also putting upward pressure on domestic prices, as pricing remains tied to the U.S. dollar.

Here is a historical overview of Brazilian beef exports starting from January 2022. The chart was created using DataLiner data:

Source: DataLiner (click here to request a demo)

Record Exports and Higher Cattle Prices

Roberta points out that the main driver behind the appreciation of cattle prices (arroba) is dollar-denominated exports, which led producers to align domestic prices with those of the international market. “We can already feel this in the rising price of beef for Brazilian consumers,” she notes.

In April, the average price per ton of exported beef reached US$ 4,900, according to USDA (United States Department of Agriculture) data. With the Brazilian real weakened, this translates to higher revenues in local currency for exporters — which, in turn, raises the amount paid to producers.

Tight Processing Schedules in the Industry

Another indicator of the market’s strength is the shorter slaughter schedules, suggesting a limited cattle supply. This situation is worsened by the increased slaughter of females, which may compromise future productivity in the country’s cattle industry.

Font: datamarnews.com

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