Despite the fall in May, beef prices should continue to rise, says professor

Despite the oscillation throughout May, with a predominant downward trend, the price of live cattle should not remain at a low level.

This is the assessment of the professor and researcher at USP, Thiago Bernardino, in an interview with CNN Rádio.

The moment, according to him, is a “transition from harvest to off-season”, with a greater volume of cattle in the field.

“May had a drop, but June should remain under pressure, at the end of the first semester for the second, we should still have high prices for live cattle.”

The professor explains that Brazil benefits as it produces a large volume of pork and chicken as well. “With high energy and fuel costs, purchasing power does not only allow beef and consumers are looking for alternatives, which have also appreciated, but not at the same pace.”

The cost is also higher in the field, something that is passed on to the consumer. “After the very strong demand, even internal, in 2020 and 2021, we had problems with the logistics of inputs that come, for example, from Asia, in the short term there is no possibility of a stronger fall in the price of meat.”

In the case of beef, Thiago said that there is “supply recovery”: “This animal tends to start appearing in the field, added to the exchange rate at R$ 4.80 or R$ 5, it is unfavorable to reduce exports, on the other hand the increase in interest rates can bring about a balance between supply and demand.”

“With all these factors, there may be a slightly better supply and better control, in the medium and long term it may be positive, but with the second semester, with the World Cup, election, there is an accumulation of income and the price may rise again. ”, he added.

*With production by Isabel Campos