Brazil beef prices hit record highs amid supply shortages

Beef prices in Brazil have reached historic highs, driven by reduced animal supply and tight slaughter schedules. In São Paulo, the Cepea/Esalq indicator reached a nominal record of R$ 380.70 per arroba in mid-October, marking a 10.4% increase since early September.

Several factors are contributing to this upward trend, including higher replacement costs for calves and a reduction in domestic supply as producers hold cattle in anticipation of market shifts. While beef exports to China have seen a reduction in daily averages compared to last year, demand from other markets, such as the United States, remains robust.

In the wholesale and retail sectors, prices have risen due to increased demand following recent holidays and lower availability in cold storage facilities. While some specific cuts or products like eggs and certain dairy derivatives have seen price fluctuations, the broader cattle market remains firm with significant appreciation in dollar terms.