The price of cattle in Brazil has increased by 10% in the internal market and 18% in dollar terms for external markets due to various economic pressures.
At the beginning of the year, the price of fat cattle, measured in arrobas, was R$ 319 in São Paulo but has risen to R$ 351, marking a 10% increase that impacts local consumers. Meanwhile, for the international market, the price has surged by 18% in dollar terms due to simultaneous pressures from Brazilian protein exports and a decline of the dollar in the domestic market. This reflects a complex interplay of domestic price increases and international currency fluctuations.
Historically, the price of arroba has rarely exceeded US$ 60, achieving this figure only in specific years such as 2008, 2010, 2021, and 2022 when it peaked at US$ 73. Presently, the price per arroba has increased from an average of R$ 255 in 2023-2024 to R$ 330. The fluctuation is not only consequential for consumers but also for Brazilian exporters who are reliant on favorable pricing in global markets.
Analyst Thiago Bernardino de Carvalho from the Cepea attributes this recent price increase to investments made in the cattle ranching sector during 2021 and 2022, which have positively impacted supply available in 2023 to 2025. This price increase is indicative of larger economic trends affecting the agricultural sector and could have longer-term implications for food costs and export competitiveness as Brazil navigates both local demands and global pricing pressures.
