Brazil: Agro Radar of July 2024 analyzes the promising outlook for the pig market

Published 2024년 7월 9일

Tridge summary

Itaú BBA Agro Consulting's July 2024 report highlights the resilience of Brazil's pig sector despite rising production costs, with stable profitability indicated by stable high prices and expanded export markets. The sector has seen a 14.5% increase in live animal prices from June 2023, despite a 3% rise in costs. However, exports have experienced mixed results, with a modest 1.5% growth to May 2024, influenced by a significant 39% decrease in exports to China. Despite challenges from European competition, the sector's positive margins, fed by low feed costs and strategic market diversification, are expected to persist, ensuring a promising outlook for Brazilian producers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Itaú BBA Agro Consulting released the Monthly Agro for July 2024, presenting a detailed analysis of the pig sector, which continues to present a remunerative scenario despite rising production costs. Pig prices have followed this increase in costs, maintaining high spreads and favorable margins for producers. Furthermore, the sector has shown robustness in exports, with the opening and expansion of diversified markets. It is estimated that production costs in pig farming increased by around 2.3% in June, while the price of live animals rose a little more, reaching a spread of 12%, equivalent to R$86 per head. Compared to June 2023, the value of the animal is 14.5% higher, while costs have increased by 3%. The supply of pigs has been balanced with demand this year, avoiding large fluctuations in prices as observed in previous years. Although exports accumulated up to May registered a modest growth of 1.5% compared to the same period in 2023, it is important to highlight that the ...

Source: Portal Do Agronegocio