Live chicken sold in the interior of São Paulo began July and the third quarter of 2017 with the same price reached at the end of the first quarter: R$2.50/kg. So far (also considering last Saturday, July 1st), there have been 93 days in which live chicken has been unaware of the practically daily variations in the market, except for a few deals carried out at lower values.
It's not a record yet, but it tends to become one. The longest previous period of stability for live birds in São Paulo was recorded last year, between August 31st and September 7th – which meant 99 days without price changes. Well: if nothing different happens this week (and there are, for now, no indications in this regard), next Saturday, July 8th, the current price will be valid for 100 days. And the last record will be surpassed.
At current values, the remuneration obtained for live chicken is 15% of that recorded a year ago, when the market also operated in relative stability. However, what has gone unnoticed is that since mid-June the registered price has also been below that reached two years ago.
In other words, at the moment live chicken is worth around 4% less than in the first days of July 2015. But this loss rate tends to increase, as two years ago appreciation occurred during July, while now the trend is continuing of stability.
But not only. Even though it was a small difference, in July 2015 corn reached a lower price than the current price in the São Paulo market. Add to this the other production costs (which, of course, have not declined) and, above all, the inflation accumulated in the period, of at least 12%, and you will have a faithful portrait of independent chicken production. It is no surprise that in São Paulo this segment is almost disappearing.
Source: Agrolink
