Meat and coffee will limit deeper relief in wholesale agricultural prices in 2025

Published Jan 25, 2025

Tridge summary

Economists forecast that despite a expected increase in soybean harvest in 2025, agricultural prices for producers will not significantly decrease due to increased meat and coffee prices. The rise in beef prices is attributed to the cattle cycle, climate effects, and exchange rate depreciation, with an anticipated 17% increase in beef cattle by the end of the year. Meat prices at wholesale have already risen by 37.40% in 2024, and it is predicted that the meat group will keep pushing up agricultural prices in 2025, alongside coffee which saw a 120.40% increase in 2024.

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

Original content

Although the market expects a bumper soybean harvest in 2025 - which should help alleviate wholesale agricultural prices - meat and coffee, which are expected to remain under pressure, should prevent a more significant slowdown in agricultural prices for producers in 2025, according to economists consulted by . The prospect of more expensive meat is supported by the current cattle cycle for beef cattle, in addition to the climate effects and exchange rate depreciation, which marked the end of 2024. Additionally, analysts note, the expectation of an increase in Brazilian exports should be another vector of pressure. As a result, the increase in beef prices contaminates the prices of alternative proteins, such as chicken and pork, and also the consumption of eggs. "Meat will become more expensive and this will have political effects. It will also become more expensive in 2026 and 2027. If I had to make a bet, the safest one I would make is: beef cattle will become more expensive ...

Source: Broadcast