Brazil fed cattle quotations down over last year - Cepea

Price averages lower than those recorded in 2022
calendar icon 22 November 2023
clock icon 2 minute read

Brazil fed cattle quotations have been oscillating in 2023, but are still at lower levels compared to the year before, according to a recent market report from Cepea

Taking the monthly series in 2023 into account, all price averages are lower compared to those registered in the same months of 2022, and the most significant price drop (-26%) was confirmed in September.

The decline is attributed to the higher supply of animals to slaughter and to the increase of beef production this year. According to data from IBGE, beef production this year (from January to September) hit a record. In the partial of 2023, 6.39 million tons were produced, for an increase of 8.37% compared to the same period in 2022 and 4.5% more against the previous record, in 2019.

Data from IBGE indicate a shift in the productive cycle in 2023, with more animals ready to slaughter. In 2023 (until September), the volume of slaughtered animals advanced 10.24% in relation to the same period last year, totaling 24.42 million animals – data from IBGE.

The average yield in 2023 is 262 kg, only 1.71% below that observed last year, when it hit a record, according to data from IBGE.

Lower fed cattle levels in 2023 tend to discourage new investments from farmers and result in the slaughter of lighter animals, such as adult cows, which affects the productive cycle in the coming years.

However, the supply of ready-to-slaughter animals has reduced recently, because of the lower number of animals confined between November and December. As for the demand, the holidays tend to boost beef consumption. Moreover, the good pace of shipments tends to reinforce possible price rises.

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