Prices of live swine in Brazil rise above pre-pandemic period

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Porto Alegre, July 30, 2020 – The prices of live pigs and the main wholesale cuts showed an aggressive upward movement across the country during the first half of July. On July 23, the average of live pig in Brazil’s Center-South was BRL 5.57, according to a survey by SAFRAS & Mercado, which represents an increase of 26.6% over the average of BRL 4.40 registered on June 30. Before the deepening of the pandemic, in mid-March, it was at BRL 5.15. The movement is justified by the reduced availability of meat in the domestic market, with a decline in the average weight of animals in some states, such as Paraná, São Paulo, Minas Gerais, and Santa Catarina. Moreover, exports accelerated from May, reaching historic marks, further reducing the available supply, mainly in Santa Catarina and Rio Grande do Sul, states that concentrate the plants authorized to export to China. Part of the readjustments also stemmed from the farmers’ search for corrections given the high cost of production, with corn and soymeal at high levels in the country.

The continuation of this aggressive movement towards the price of live pigs tends to be difficult in the coming few weeks, since the total and fast cost transfer to the final consumption point becomes a complicated task due to the deepening of the crisis, which causes a strong deterioration of income and unemployment. In any case, the trend is for sustained prices with the possibility of rising rates due to the tight supply situation. Production flow should continue to progress gradually with the easing of restrictive measures.

Agência SAFRAS Latam

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