Brazil: Poultry, pork and beef prices do not keep up with high corn and soybean meal

Published 2020년 11월 18일

Tridge summary

In October, Brazil saw significant price increases in the main inputs for poultry, pork, and beef rations, with corn and soybean meal rising by 25.7% and 25.1% respectively from the previous month. These increases, attributed to a strong dollar, high exports, and falling domestic stocks, have led to challenges for farmers in terms of cost management. Despite these challenges, the payment to poultry, beef, and pig farmers has improved but has not yet offset the increased costs. Consequently, the prices for broiler chickens, beef cattle, and finished pork have also surged, with the most significant impact on poultry farmers. However, the exchange ratio between these products and corn/soybean meal has worsened, further pressuring farmers.

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

Original content

The main inputs that make up the poultry, pork and beef rations - corn and soybean meal - had a significant price increase in October, comments Scot Consultoria, in its “Conjuncture Letter”. Corn increased 25.7% from September to October and bran, 25.1%. "This year, prices are on average 86.9% and 101.8% higher, respectively", points out the consultancy, explaining that the scenario is due to the rising dollar, the good volumes exported of these grains and the falling stocks in the domestic market. Thus, the remuneration of ranchers, although it has improved, has not yet been sufficient to cope with the increase in food inputs. In the case of broiler chickens, in October, in farms in the interior of São Paulo, prices increased by an average of 4.9% compared to September, with an increase of 36.1% since the beginning of the year. "The payment (to the poultry farmer) in October was 30.3% higher compared to the same month of 2019", quotes Scot in the report. In relation to beef ...

Source: Beefpoint