Brazil cattle margins rise sharply despite higher costs
Tight supply and strong exports boost farmer returns
7 July 2025
1 minute read
By: Cattle production margins in Brazil surged over the past year, outpacing rising operational costs, according to a recent report from Cepea.
In the calf stage, margins per arroba produced rose 81.6% in the 12-month period ending in May. In the backgrounding and fattening stages, the average increase reached 98.5%.
Between May 2024 and May 2025, the Effective Operational Cost (EOC) rose 11.8% for the calf stage and 33.1% for backgrounding and fattening, based on national averages.
Despite these cost increases, strong price gains for both fed cattle and calves—especially between October and January—helped drive higher profitability.
The CEPEA/ESALQ Index for fed cattle in São Paulo State climbed 36% (nominal terms) year over year in May 2025, while the calf index for Mato Grosso do Sul rose 40%. Cepea attributed the price gains to a limited supply of slaughter-ready animals and growing beef exports.
