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Influence of emotional factors caused by the coronavirus pandemic on cattle trades

More than direct economic effects, the covid-19 pandemic has resulted in a series of emotional consequences for global population. Neuroscience studies, which evaluate the connection of emotions, thoughts, feelings and human behaviors, open room to reflections on how emotional impacts brought by the pandemic are noticed on trades of a certain product.

 

When we consider that a human being is in charge of business, it is possible to understand that the psychological strength of a pandemic crisis is as relevant as other technical aspects that define the market. Cepea has spoken to cattle farmers during the covid-19 spreading in Brazil and responses indicate that those who make the decision about calf and lean and fed cattle trades have very different perceptions.

 

Some agents were indeed concerned about the global health scenario, which resulted in a certain decrease in the purchase and sale of animals. In addition to this, players say that operational issues, such as problems in logistics and the cancelling of face-to-face auctions, aggravate concerns.

 

Elderly people, considered to be in the risk group, were in general refrained from trades, because they feared to be contaminated at human contact during sales – boarding animals at farms or visiting other players.

 

The fear of a demand decrease for beef due to a reduction in the Brazilian purchase power, in turn, has encouraged some cattle farmers to trade, increasing supply and pressing down quotes of some batches. Agents also say that they feared problems to purchase inputs for the animal production.

 

Other players claimed they did not register impacts of negative emotional matters, directly or indirectly related to the pandemic, on business.

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