For industry, retail shows greed and does not reduce meat prices in Brazil

Published 2021년 10월 26일

Tridge summary

The article highlights the ongoing challenges in the Brazilian beef industry, particularly due to the halt in beef purchases by China following the detection of two atypical mad cow cases. This has led to a significant decrease in product prices for producers, industry members, and retailers, with consumers seeing a slight price increase in retail beef prices. The situation is further complicated by the impact of the appreciating dollar, which initially benefited ranchers and exporters but has now increased costs due to rising international prices of inputs and the depreciation of the Brazilian real. The article also points out the need for improved communication and collaboration within the industry to navigate these difficulties. Additionally, there is discussion around the need for government intervention in meat prices to address the current dilemma, though not all stakeholders support this idea. The article also mentions the potential negative effects of Argentina's government intervention in meat prices on its production chain.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

BEEF Photo Paulo Whitaker Reuters What the chain needs is to mature relations, says consultant Luciano Vacari. The interruption of the purchase of beef by China puts producers, industry and retailers on a collision course. The dispute intensified after the Chinese, responsible for buying 50% of Brazilian beef exported, stopped purchasing this protein due to the occurrence of two atypical cases of mad cow. The departure of the Chinese from the Brazilian market, 50 days ago, is causing great difficulties for the production chain. The arroba de boi gordo fell to R$ 260 on Friday (22) in the state of São Paulo. This value is 19% lower than the price at the end of June, when cattle reached R$ 322 per arroba. The price of a kilo of beef also drops at wholesale. The current value, quoted at R$ 19 a kg, on average, is 5% below that of a month ago, according to data from Cepea (Center for Advanced Studies in Applied Economics). Retail, however, follows the opposite path. In the last 30 ...
Source: Brasilagro

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