Brazilian beef prices in a downward spiral - Cepea
High supply, limited demand influenced prices
11 March 2024
1 minute read
By: Prices for both fed cattle and beef in Brazil were in a downward trend in late February, according to a recent market report from Cepea. In addition to the high supply of ready-to-slaughter animals, the limited demand from meatpackers also influenced price drops.
The CEPEA/B3 Index for fed cattle (São Paulo State) decreased 3.92% in February, closing at BRL 235.40 per arroba. In the same period, beef carcass values dropped 2%, at BRL 16.48 per kilo in the wholesale market of the Greater SP.
Beef production hit a record last year, which explains the downward trend for both fed cattle and beef in the wholesale market during 2023. The total produced was 8.91 million tons, 11.2% up than in 2022 and 8.6% compared to the previous record, in 2019, according to data from the IBGE.
Beef volume increased by 900 thousand tons in relation to 2022, while exports rose only by 22.8 thousand tons, to 2.29 million tons – it has absorbed 25.7% of the national production. The surplus was allocated to the domestic market, leading to a price decrease. In 2023, the CEPEA/B3 Index for fed cattle (São Paulo state) downed 12%, and special beef carcass prices dropped circa 9% in the wholesale market of the Greater SP.
