Beef highs make other animal origin proteins surge

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The atypical and sharp upward movement throughout the Brazilian beef chain spilled over into other animal proteins, which also showed a consistent upward movement. Of course, this happened to a lesser extent compared to beef. This is a basic macroeconomic movement, with consumers generally seeking alternatives that preserve their income. With beef cuts showing highs above 50% in certain cases, average Brazilians have chosen other proteins, with emphasis on chicken and eggs. The consequence of the increasing demand is price adjustment. It is important to highlight that cattle farming is already undergoing a correction movement, with a momentary reduction of Chinese imports in November, besides the saturation of domestic consumers, unable to absorb adjustments in this proportion. For other meat products, the upward movement was more balanced.

            Under such conditions the prices of the three main animal proteins reached their historical peak in November, maintaining this pattern in early December, even with the ongoing correction movement for beef cuts. The attached graph expresses the wholesale movement in the country’s main consuming center, São Paulo. For beef the movement was impressive, with hindquarter reaching the peak of BRL 20.00 per kilogram. The average price in November was BRL 16.42 per kilogram, while the partial average in December was BRL 19.11 per kilogram, average that must fall throughout the month amid the movement of price correction. For forequarter the same assumption is valid, with its average having reached the level of BRL 10.81 per kilogram in November. In December the partial average is BRL 12.20 per kilogram, also with possibility of decline with the correction movement.