Brazil has an increase in beef and pork slaughter and a decline in chicken in the 1st quarter

In the release of the results of animal production in the 1st quarter of this year, the Brazilian Institute of Geography and Statistics (IBGE) pointed out that while the slaughter, which is the sale of cattle to slaughterhouses, of cattle and swine increased, that of chicken decreased, compared to the same period last year.

According to the data, the slaughter of chicken retreated 1.7%. The slaughter of cattle, on the other hand, increased by 5.5% and that of pigs grew by 7.2%.

According to an expert heard by the CNN , in the case of beef, the result occurs as a function of the livestock cycle of matrix disposal – which is the phase in which there is more female slaughter in relation to the total slaughtered. This occurs when calf production is higher. As a consequence, the price of calves decreases and the producer increases the amount of cow slaughter, as explained by Hyberville Neto, consultant and director of HN AGRO.

“The increase in cattle slaughter in the first quarter of 2022, compared to the same range in 2021, is related to the moment of the price cycle in beef cattle. This cycle is influenced by the profitability of calf producers. When calf prices are low, as they are now, the sale of cows and heifers (calf producers) to slaughterhouses increases, which generates an increase in total slaughter”, he said.

In June this year, the price of calf in São Paulo, according to the Center for Advanced Studies in Applied Economics (Cepea), is 18.0% lower than in the same period in 2021, considering values ​​deflated by the IGP-DI. Despite the annual increase in the 1st quarter of this year, this is the second lowest slaughter for the quarter since 2010.

Regarding pigs, the result occurs despite the still tight situation of costs and revenues. Therefore, there has not yet been a production adjustment that will cause the slaughter to fall, as happened with the chicken. Unlike chicken, swine have a longer cycle time and, therefore, impacts have not yet been felt at slaughter.

As for poultry, with the rise in the prices of inputs, such as corn, for example, and the decrease in the profitability of the activity since the beginning of the year and which worsened after the war in Ukraine, a negative adjustment had to be made in production. , which reduced sales to slaughterhouses (slaughter).

Source: CNN Brasil

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