The beef price has shown little variation in recent days, with a negative bias for prices, still driven by the large availability of cattle for slaughter. The scenario persists even in the face of the problems caused by the rain in Rio Grande do Sul, since the state’s cattle farming has little influence on market pricing in the rest of Brazil.
The Cepea/B3 live cattle indicator was quoted at R$ 233.05 per arroba yesterday (8/5), a decrease of 0.04%.
In the first quarter alone, national cattle slaughter reached 9.237 million heads, an increase of 24.1% compared to the same period in 2023, according to data from the Brazilian Institute of Geography and Statistics (IBGE) released today (9/5). The result indicates that the supply of animals remains high.
Earlier, a Minerva Foods executive stated in a conference call with analysts that the bullish livestock cycle tends to remain positive for the industry until mid-2025, as the female retention movement has not yet begun.
Gaucho livestock
Like other sectors, livestock farming in Rio Grande do Sul was hit by the rains and floods that have devastated several municipalities in the state since last week.
“In addition to destroyed bridges and roads, pastures are underwater and animals were swept away by the flood. Even in regions that were not flooded, the soils are waterlogged, making it difficult to manage livestock,” said the Center for Advanced Studies in Applied Economics (Cepea) in a note.
Slaughterhouses consulted by the institute stopped activities because they were hit by water or because employees had difficulty getting around.
“The transport of animals and meat is also compromised. Industry representatives inform Cepea that a few remain active only for purchases, but with no forecast for shipments.”
Even so, in Rio Grande do Sul, European breeds are predominantly bred, more adapted to the cold climate. “Cattle and meat from this State do not have a large circulation in other regions, and, therefore, recent events should not significantly influence livestock negotiations in the country”, estimated Cepea.
