Brazil: Rising price of beef signals a turnaround in the livestock cycle

Since the end of August, the price of beef cattle per arroba has been rising significantly throughout Brazil. In November, the price surpassed the R$300.00 mark, according to data from Cepea, and continues to rise. In São Paulo, the price of beef cattle reached R$350 this week, driven by reduced slaughter scales at meatpacking plants. This increase is also reflected in the price of calves, with producers confident that the livestock cycle will transition from a low to a high. Marcelo Martins, Emater-MG Regional Livestock Coordinator at the Alfenas Regional Unit, predicts that the increase in price will continue. "In Brazilian livestock farming, we experience cycles of rising and falling prices. When prices are high, the slaughter of females increases, increasing the supply of meat, which puts downward pressure on prices. Then, the reduction in available females impacts the production of calves, reducing supply and driving up prices, as is currently the case," he explains. Between ...