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30 July - Wednesday
Shortage of Cattle For Slaughter
Despite reducing production by
20% this semester, meat-packing factories in Mato Grosso are beginning to
shutdown their facilities and giving workers forced vacation because of the lack
of supply of cattle for slaughter.
22 July - Tuesday
Cattle Costs Hit Historical Levels
Data released this Tuesday, 15,
from the Center for Advanced Studies and Applied Economics (Cepea) show that the
cost of production of cattle has reached a level never before seen. Considering
a starting point back in March 2003, the index which measures the costs of
production has risen more than 60% as of March this year. In March 2008,
the cost of production of cattle - The Total Operating Cost (TOC) - rose 4.04%
from February to March and 10.6% for the year.
From March 2003 through 2008
cattle prices have 27.22% while operational cost have risen 63.19%. In
these past five years, mineral supplements, fertilizers, and labor the largest
increases, rising 48.25%, 11.97% and 8.58% respectively. Only in the month of
March this year, the same items rose 18.42%, 7.57% and 21.89%.
source:
CEPEA/ESALQ
3 July - Thursday
Russia Bars Beef Imports from Goiás
(go to article)
Meat - Index for fed cattle is 55 pct higher this year
Brazilian livestock sector kept marked by the lower supply
and increasing prices in June. Between May 30th and June 30th, the ESALQ/BM&F
Index for the fed cattle (Sao Paulo state) upped 10.8 percent in Real, closing
at 93.95 reals or 58.83 dollars per arroba (15 kilos) on Jun 30th. Compared to
the same period of one year ago, the Index is 55.4 percent superior (in Real).
In the beef wholesale market of Sao Paulo capital, quotations also moved up. The
steer carcass averaged 5.26 reals or 3.29 dollars per kilo on Jun 30th,
increasing 1.3 percent in Real over May 30th.
For the living hog, prices received by farmers averaged 3.16 reals or 1.97
dollar per kilo on June 30th in Sao Paulo state, increasing 2.05 percent in Real
over May 30th. In the wholesale market of Sao Paulo capital, the hog carcass
upped 2.44 percent in Real during the same period, at 4.44 reals or 2.77 dollars
per kilo on Jun 30th.
Likewise, in the poultry market, prices moved up. The frozen meat prices
increased 4.81 percent in Real between May 30th and Jun 30th, at 2.89 reals or
1.81 dollar per kilo on Monday; for the chilled one, the raise was of 3.2
percent in Real, at 2.68 reals or 1.67 dollar per kilo, both in the wholesale
market of Sao Paulo capital – the most important Brazilian consumer reference. (Cepea
– Brazil)
9 Jun - Monday
Selling Price Beats Production Cost
A Campo Grande newspaper (Mato
Grosso do Sul) says the arroba price (R$85.00) has passed the production cost
per arroba of R$77.00. Despite record prices per arroaba paid to ranchers,
profits have been slim.
4 June - Wednesday
Cattle Prices Rise in May
Since the beginning of the year prices to
ranchers have risen 18.16% and just last month 9.31%. There are a lack of
cattle for slaughter. Normally, this time of year cattle prices would be
dropping and near their yearly lows. Inputs also continue rising
putting pressure on profits. source CEPEA/ESALQ
27 May - Tuesday
JBS
Risks Profit, Amasses Debt to Become Biggest Beef Producer
By Carlos Caminada
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May 27 (Bloomberg) -- Joesley Batista, chief executive officer of Brazil's JBS
SA, couldn't convince controlling shareholders of Swift & Co. to take him
seriously when he first tried to buy the American meat company in July 2005.
``After three hours laying my plan out, they asked me if I was really there to
buy, not sell,'' said Batista, 36. Swift, based in Greeley, Colorado, was 10
times bigger than JBS. ``We're used to this kind of thing,'' said Batista,
wearing blue jeans and a violet shirt with a BIC pen in the pocket.
Since early 2007, Batista has spent at least $1.75 billion buying 10 companies,
including Swift and the beef unit of Smithfield Foods Inc., transforming JBS
into the world's biggest producer of cattle meat. JBS says it will account for
10 percent of global beef this year through 120 units worldwide.
(Go to Article)
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Workers
cut and separate beef inside the Froboi cold storage
plant in Andradina, Brazil, on Feb. 5, 2007.
Photographer: Paulo Fridman/Bloomberg News |
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15 May - Thursday
Rising calf
prices keep concerning growers
The lower calf supply has been concerning Brazilian cattle growers that need to
purchase these animals. Calf prices have been reaching records day-by-day. In
the states of Sao Paulo and Mato Grosso do Sul, the calf from 8 to 12 months
have been trading until 700.00 reals or 407.00 dollars, increasing 40 percent in
Real in the accumulated of this year.
Last days, the steer averaged 80.00 reals or 48.00 dollars per arroba (15 kilos)
in the Sao Paulo state, values 40 percent in Real higher over May/07.
Considering this price, cattle growers that sell an animal of 16.5 arrobas have
been getting less than two calves.
source CEPEA/ESALQ
9 May - Friday
Salt Up 70% Since January 08
Cattle operations in Mato
Grosso are shocked at the price rise in salt. Despite strong cattle
prices, some inputs are hitting the bottom line.
source: Diário
de Cuiabá
2 May - Friday
Traditionally, in April and
May, Brazilian steer supply usually reaches its highest volumes. This year,
however, the restricted supply has been supporting prices, which are superior to
the record set in the second semester of last year.
On Wednesday, April 30th, the ESALQ/BM&F Index (São Paulo state) closed at 77.55
Reais or US$46.63 per arroba (15 kilos), increasing 0.9% over March 31st. The
current Index is the highest one, in nominal terms.
In the wholesale market of São Paulo city, beef prices are also superior to the
levels of December last year. The steer carcass valuated 3.1% in Reais during
April, averaging 4.67 Reais or US$2.81 per kilo on Wednesday, Apr 30th.
source CEPEA/ESALQ
10 April - Thursday
Average price producer received for live cattle
1 arroaba (@) = 15 kg or 33 lbs. Producer receives about
51% of weight
per head or per carcass.
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