Uncertain scenario for 2008

The year of 2008 started very unclear for the Brazilian cattle livestock sector. Besides the uncertainties regarding the supply, slaughterhouses are concerned about growers' adhesion to the new traceability system and about the new demands required by importers, especially those from the European Union.

The new rules of the Brazilian Bovine and Bubaline Identification and Certification System - Sisbov, shows that in 2009 cattle growers will have to purchase calves from farms which are registered in this Sibov system.

In the accumulated of the first fortnight this month, the ESALQ/BM&F Index (Sao Paulo state) increased 5 percent in Real, averaging 76.77 reals or 43.87 dollars per arroba (15 kilos) on Tuesday, Jan 15th. In the wholesale market of Sao Paulo city, the steer carcass was traded at 4.56 reals or 2.61 dollars per kilo on Jan 15th, upping 4.5 percent in Real during the same period.

In the hog and poultry markets, higher inputs values will keep concerning growers.

From Dec 28th to Jan 15th, living hog prices received by farmers decreased 11.7 percent in Real in Sao Paulo state. In the wholesale market of Sao Paulo capital, the hog carcass devaluated more than 10 percent in Real during the same period.

For poultry, frozen meat increased 2.41 percent in Real during the first fortnight of January. For the chilled meat, the increase was of 6 percent in Real - both in the wholesale market of Sao Paulo capital - the most important Brazilian consumer reference.

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