The prices of cattle destined for slaughter are showing a significant recovery at the beginning of September. However, when we consider the accumulated result for 2023 (taking into account the monthly averages adjusted by the CEPEA/B3 index for live cattle in the state of São Paulo), we observe a sharp drop of 26.3%. On the other hand, when we analyze beef in the In the same period, the devaluation of matched carcasses is relatively smaller, registering a reduction of 15.9%.
Record price difference between beef and live cattle in 2023
CEPEA data points to a record difference in the monthly prices of beef and beef. Protein stands out with a notable advantage. This means that, in the Greater São Paulo wholesale market, beef has never been so much more expensive compared to cattle destined for slaughter. In September 2023, the price of wholesale meat rose significantly, reaching almost 29 reais more per arroba compared to beef cattle. This increase established the largest discrepancy ever recorded in the CEPEA monthly data series. This series began in 2001 and focuses on housing. Comparatively, in August 2023, this difference was 22.8 Reais per arroba, already signaling a gap between prices that became more pronounced in September.
On the other hand, in September of the previous year, the situation was reversed, with live cattle being traded at higher prices than meat, with an advantage of 9.23 Reais per arroba. Until then, the biggest advantage of beef over beef was recorded, which was 26.54 Reais per arroba, in June 2017. It is important to highlight that in the first half of this year, the livestock sector faced three significant challenges. Firstly, Operation Carne Fraca was conducted by the Federal Police. Then, the Funrural charge was returned. Furthermore, in May, investigations took place involving an industry of great relevance to the sector. All of these events exerted considerable pressure on the trading values of live cattle, resulting in a notable difference in prices compared to beef.
Source: Aline Merladete | agrolink
