Lower Beef Prices Spark Concern Over Economy09 August 2013
BRAZIL - Beef export prices have dropped 8.4 per cent over the last 12 months, the Centre for Advanced Studies on Applied Economics (CEPEA) has revealed.
The global economic 'slowdown' has been blamed for the drop in prices, with China at the centre of the down turn.
Economists are concerned about the Brazilian economy which has also shown slow economic growth recently. Unemployment remains low but people are gaining income without increases in production, CEPEA explained.
But, this has not affected income from exports which amassed a record value of 2.75 billion through the first half of the year.
Lower demand has pushed prices down from $4,735/ton in May 2012 to $4,354/ton.
Beef carcass quotes jumped 6.7 per cent over the last twelve months, changing from 5.93 reals per kilo in May 2012 to 6.33 reals per kilo in June this year.
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