Brazilian Broiler Prices Lower than Beef06 September 2013
BRAZIL - Broiler price rises have been leading to the narrowing of the price gap between broiler and beef throughout the last month.
In August, the average price of 3.15 reais per kilo for the chilled broiler was 50 per cent smaller than beef carcass quotes (6.27 reais per kilo), both in the wholesale market of the Greater São Paulo.
In July, broiler prices were 54 per cent cheaper than beef, also in the wholesale market of the Greater São Paulo.
Concerning the swine sector, the upward trend observed for hog and pork prices weakened in late August in most regions surveyed by Cepea. In some areas, quotes registered small decreases.
The supply of slaughter-ready animals, which was low, increased slightly compared to the demand. On the other hand, in the Southern Brazil, prices kept the upward trend, favored by the good exports performance.
Cattlemen expenses regarding calves purchases resumed increasing this year, accumulating a 9.4 per cent increase from January to July. This number accounts for a “Brazilian average”, calculated by Cepea based on prices practiced on typical farms in ten states (Goiás, Minas Gerais, Mato Grosso do Sul, Mato Grosso, Pará, Paraná, Roraima, Rio Grande do Sul, São Paulo and Tocantins).
In the same period of 2012 (January to July), costs with animal purchases dropped 1.5 per cent, and for the entire 2012, the decrease was 2.25 per cent.
In 2013, the increase of expenses with calves is attributed mainly to higher prices of calves. The ESALQ/BM&FBovespa calf price Index (Mato Grosso do Sul State; nelore, 8 to 12 months age) has upped 15 per cent this year, to close at 804.18 reais (337.47 dollars) on August 30. In the same period of 2012, quotes dropped five per cent.
In August, the Index has registered a monthly average of 800.94 reais, 12.3 per cent more than in the same period of last year and the second highest of Cepea series, in nominal terms, started in February 2000 – after that registered in July/13 (804.25 reais). In real terms (IGP-DI July/13), the record for calf quotes were verified in July 2008, of 961.41 reais.
In general terms, expenses with calves and lean cattle purchases are the item that cost more in the cattle finishing, not only in Brazil, but also in other beef producing countries.
As for the fed cattle market in late August, prices from calves to beef were firm in the Brazilian market. In general, the supply was below the demand, underpinning quotes.ThePoultrySite News Desk