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Cepea, December 6, 2023 – Changes in Argentina’s government may not affect the Brazilian livestock sector. As a big meat producer, Brazil purchases small amounts of the Argentine product – that country is the fifth main producer and exporter of beef, according to data from the USDA.
In the international market, there is also no expectation of a fierce competition with Brazil. Even that Argentina exports more, the meat produced in the country is recognized by its high quality and is usually traded in different segments than those occupied by the Brazilian product.
Moreover, production costs in Argentina are much higher compared to Brazil. Agribenchmark data show that, in 2022, the production cost in Brazil averaged USD 47.90 per arroba, in the system based on pastures, and USD 57.4 per arroba in that based on feedlot. In Argentina, the averages reached USD 62.69 per arroba (pastures), which represents 31% more than that in Brazil, and USD 78.02 per arroba (feedlot), 36% higher.
It is important to mention that Cepea and CNA (Brazilian Confederation of Agriculture and Livestock) represent Brazil in the Agri Benchmark Beef Conference, an annual event that gathers researchers to compare and discuss zootechnical and economic data regarding cattle farming from several countries.
SWINE – Live swine prices (delivered in slaughterhouses – independent market) increased in November compared to October in most regions surveyed by Cepea. On the other hand, in the annual comparison, price averages are lower than those verified in November/22, in real terms.
The monthly rises are a result of the warm demand of pork meat, due to the typical higher demand observed at the end of the year.
POULTRY – Prices of chicken products increased in November, which ensured higher monthly averages compared to those verified in October. This is the fourth month in a row that domestic values are on the rise.
This advance is mainly related to the lower production at the agroindustry in the period. The holidays in November in Brazil reduced the number of slaughtering days. Therefore, the chicken meat availability reduced.
(Cepea-Brazil)
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Fonte: Cepea