Production volume keeps prices lower in Brazil

In general, beef, pork and poultry meat prices are pressured by the larger supply this year. In these sectors, around 70 to 80 percent of the Brazilian production is consumed by the domestic market, but the 20 to 30 percent share exported is very important to support prices.

Due to the Foot and Mouth Disease (FMD) outbreak in October 2005, beef prices dropped to the lowest levels ever. Pork prices were also pressured down by the restriction imposed by Russia. For the poultry meat, the impact came from the bird flu spread in Europe and Asia, which affected the national exports.

In April, pork and poultry meat markets had a better performance, in response of a good supply management and also of the larger exports. In the beef (cattle) market, however, it is time for an increasing supply, before the winter season.

Between May 15 an 19, in São Paulo state, the poultry farmer receive around 0.54 dollar per kilo of the living animal. The hog has been traded at 0.68 dollar per kilo. Steer prices received by farmers, in turn, have been settled around 22.00 dollars per arroba (15 kilos), payable within 21 to 30 days after the slaughter.

Note: Considered exchange rate: R$ 2.20/US$. It has reached R$ 2.45/US$ in May 2005 and R$ 3.00/US$ in May 2004.

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