A study released earlier this month by the Brazilian Confederation of Agriculture (CNA) shows that the beef cattle sector began the year maintaining the loss of income registered in 2004.
This is a result of a combination of lower prices paid for cattle ready for slaughter and a rise in production costs.
The study – done in conjunction with the University of São Paulo’s Center of Advanced Studies in Applied Economics – indicates that production costs rose 0.22% in January, while the price of slaughter-ready cattle dropped 3.18%.
In 2004 production costs increased 10.10%, while the price of slaughter-ready cattle fell 0.03%.
Another study also done by the CNA/USP team found that Brazil occupies first place in the world ranking of beef export countries.
From January to October 2004, 1.5 million tons of beef were exported, including fresh and processed meat. Sales during that period earned the country US$ 2.021 billlion.
The CNA/Cepea study shows that, despite the favorable export sale prospects, the beef production sector in Brazil is experiencing a crisis when it comes to the price paid to ranchers.
The analysis was based on nine states, responsible for 78% of the domestic herd, which amounts to 190 million head. The price of fattened cattle fell 2.13%, and production costs rose 9.04%.