Brasília – The Ministry of Agriculture, Livestock and Supply (MAPA) has made public that fat cattle arroba (15 kg) price has declined in late December, down by an average of 15%. As per MAPA periodic survey, the fat cattle arroba was BRL 180 (USD 45) on the last 30th. In early December, it reached BRL 216 (USD 54).
The ministry reported that beef price will decline for the final consumer. The scenario “points to wholesale prices settling down, which tend to translate into retail soon,” reads the press release, adding that the rump “price was down by 4.5% over the last few days.”
MAPA projects that arroba will remain between BRL 180-200 (USD 45-50) over the next few months. The price drop cuts the 28.5% hike in the beef price over the last six months. The projection is that the foodstuff won’t return to the previous level, tough. “We are considering that this is here to stay, a new level for the beef price,” assesses MAPA Trade and Supply Department director Sílvio Farnese.
There is more than one reason for the potential stabilization of prices in levels higher than a year ago. The international market tends to buy more Brazilian beef, producers are paying more for acquiring calves, and an eventual economic recovery benefits the beef consumption in Brazil.
Last year, benefited by China’s cattle loss and the dollar hike, Brazil broke into markets, and several neat packers were accredited to export more beef. In November only, five meat packers were accredited by the Chinese to export beef. There were also developments in other countries. Eight meat packers were accredited by Saudi Arabia
Brazilian beef is competitive in the international market because it’s cheaper than beef from other beef-producing countries such as Australia and the United States, which spend more in the cattle raising because of the confinement and feeding regimen. Brazilian cattle is pasture-raised and grass-fed.
Brazil produces around 9 million tonnes of beef a year, and 70% is consumed domestically. But sales abroad are interesting for the produces and drive prices up. “Breaking into a market that starts receiving a Brazilian product helps a raiser in shaping prices,” explains Farnese.
Translated by Guilherme Miranda
